Evidence of generalized inflation despite May price hikes: BoC's Macklem

Evidence of generalized inflation despite May price hikes: BoC's Macklem focuses on a Bank of Canada message that higher prices have not broadened across the consumer basket. Statistics Canada reported inflation rose to 3.2% in May, the highest since late 2023 and above the central bank’s one-to-three percent target band. Governor Tiff Macklem said he is not seeing evidence of generalized inflation, arguing the recent increase largely reflects global energy prices linked to the war in Iran. He added that services such as air transportation rose due to jet fuel surcharges, and that the share of goods and services priced above three percent remains close to historical norms. Food inflation remains a concern: grocery food costs rose 0.5 percentage point to 4.3% year-over-year, driven by fresh fruit and vegetables. Macklem said the Bank will publish updated forecasts with its next rate decision on July 15, and he spoke in Paris at a June 23, 2026 Canadian Press event.