BoC's Macklem Sees No Broad Inflation as Canada CPI Hits 3.2% in May
Updated
Updated · BNN Bloomberg · Jun 23
BoC's Macklem Sees No Broad Inflation as Canada CPI Hits 3.2% in May
2 articles · Updated · BNN Bloomberg · Jun 23
Summary
Canada’s inflation rate climbed to 3.2% in May—its highest since late 2023 and above the Bank of Canada’s 1%-3% target band—but Tiff Macklem said the jump does not show generalized inflation.
Energy prices tied to the Iran war drove most of the recent increase, Macklem said, with higher airfares also tracing back to jet-fuel surcharges rather than broader price pressures.
Food inflation remains a concern: grocery prices rose 4.3% from a year earlier, up 0.5 percentage point, led by fresh fruit and vegetables as reduced supply and fuel costs pushed prices higher.
Macklem said the share of goods and services rising more than 3% is still near historical norms, while the recent U.S.-Iran peace agreement is already easing oil prices and inflation risks.
The Bank of Canada will publish updated economic and inflation forecasts with its next interest-rate decision on July 15.