BoC’s Macklem Flags Strong Core Inflation but Expects Some Pressures to Ease

Bank of Canada Governor Tiff Macklem said the recent increase in underlying inflation is primarily being driven by higher prices for goods other than energy. Macklem noted that strong core inflation metrics have gained the central bank’s attention, underscoring persistent price pressures in the economy. He added that some of the factors pushing core inflation higher could unwind over time, indicating potential relief in future inflation readings.