Updated
Updated · Toronto Star · Jul 6
Bank of Canada Survey Shows 70% of Canadians Expect Mideast War to Lift Inflation
Updated
Updated · Toronto Star · Jul 6

Bank of Canada Survey Shows 70% of Canadians Expect Mideast War to Lift Inflation

3 articles · Updated · Toronto Star · Jul 6

Summary

  • About 70% of Canadian consumers told the Bank of Canada they expect the Middle East war to push inflation higher over the next year.
  • The quarterly consumer survey, released Monday and conducted from late April to the end of May, also showed overall business sentiment deteriorated.
  • Those inflation fears were tied to rising energy and gasoline prices as conflict involving Iran in the Middle East fed through to Canadian price expectations.
  • The results add to evidence that geopolitical shocks are lifting both consumer inflation expectations and business caution in Canada.

Insights

As the Iran crisis deepens, can Canada's oil boom prevent a global recession, or is it too little, too late?
With inflation soaring and the economy weak, is the Bank of Canada's patient approach a wise move or a dangerous gamble?
Will this historic energy shock accelerate the green transition, or will the world double down on fossil fuels for security?