The Globe and Mail reports in its Friday edition that Bank of Canada Governor Stephen Poloz appears indifferent to the 17.9-per-cent jump in natural gas prices, which pushed the annual inflation rate to 1.5 per cent in March -- the fastest pace in nearly two years. The Globe's Barrie McKenna writes that Mr. Poloz's stance reflects the BOC's preoccupation with so-called "core" inflation, which filters out volatile and often temporary energy and food price changes. In March, the core consumer price index barely budged -- rising 1.3 per cent in the 12 months to March, versus 1.2 per cent in February. "Headline inflation slightly exceeded consensus expectations, but the more important issue here is that core inflation remains well behaved," says Bank of Nova Scotia economist Derek Holt. The BOC looks for evidence that consumer demand is outpacing the ability of the economy to keep pace. Another inflationary factor the BOC considers temporary is the Canadian dollar, which has lost about 10 U.S. cents in the past year. The cheaper currency is making some imported goods more expensive. But Mr. Poloz, however, calls it a "one-time" phenomenon, unless the currency falls further.