The Financial Post reports in its Friday, July 30, edition that Bank of Canada Governor Tiff Macklem is urging Canadians to resist overreacting to rising prices.
The Post's Bianca Bharti writes that on Thursday Mr. Macklem said in an op-ed in the Post: "You can be confident that we will keep the cost of living under control as the economy reopens. We shouldn't overreact to these temporary price increases." He made similar comments on July 14, despite forecasts showing inflation will exceed the BOC's target for the next couple of years.
The Post says Mr. Macklem's words were noteworthy because of the timing and how he went about communicating them. His op-ed followed Statistics Canada's report that showed the Consumer Price Index rose 3.1 per cent in June from a year earlier, the third consecutive month that year-over-year increases exceed the high-end of the BOC's comfort zone.
Equally significant was the decision to take to the pages of a national newspaper to emphasize the BOC's message that factors behind the current burst of inflation are mostly temporary. Concern about inflation has been growing since the beginning of the year, despite Mr. Macklem's repeated assurances that the BOC is on the case.
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