The Financial Post reports in its Thursday edition that Bank of Canada senior deputy governor Carolyn Wilkins says inflation pressures will be driven more by economic growth, rather than short-term swings in energy prices. A Bloomberg dispatch to the Post reports that Ms. Wilkins says price pressures should start to rise as the economy continues to gather steam. She says the BOC will move cautiously on any future rate increases. She says, "Growth on the other hand, you can look at very carefully as an indication of where the economy might be going in the future, where those wage pressures could be, how the labour market is going to perform, and that is what is going to be a longer term driver of inflation pressures." Ms. Wilkins says that about 75 per cent of the variability in total inflation is due to consumer energy prices. The BOC raised Canada's benchmark overnight lending rate to 1 per cent, with consecutive hikes in July and September, to curb the fastest growth among Group of Seven nations and an economy close to full potential. Since the second increase, the BOC has said further moves will depend on incoming data, as a stronger dollar and global slack keep inflation below its 2-per-cent target.