Macklem Sounds Alarm on Elevated Inflation and its Impact on Canada

Bank of Canada Governor Tiff Macklem has issued a warning that inflation will remain elevated in the coming months. Speaking after the central bank held its benchmark interest rate at 2.25% on September 2, Macklem pointed to a combination of high oil prices and renewed U.S. tariffs as a source of continued price pressures.

The Canadian headline inflation rate has hovered near 3% in recent months, with gasoline prices being the main culprit. Despite core inflation staying closer to the Bank of Canada's 2% target, everyday Canadians can expect their grocery bills, fuel costs, and monthly budgets to remain tight for a while longer.

Macklem specifically noted that if crude oil stays near US$100 a barrel, the Bank of Canada would expect inflation to rise in the months ahead. He also cautioned that new U.S. tariffs could affect consumer prices over time, adding to energy costs due to Middle East tensions.