The Globe and Mail reports in its Thursday, Aug. 18, edition that Bank of Canada Governor Tiff Macklem spent much of the second half of 2021 trying to convince Canadians that rising inflation numbers were not all they were cracked up to be. The Globe's David Parkinson writes that Mr. Macklem now finds himself making a similar argument in the opposite direction -- as the dampener of enthusiasm for inflation's downward turn. Mr. Macklem set to work raining on the parade within hours of Tuesday's consumer price index (CPI) report, which showed July's inflation rate falling to 7.6 per cent from 8.1 per cent in June -- the first decline in 13 months. His message, "Inflation in Canada has come down a little, but it remains far too high." Mr. Macklem stresses that while some of the biggest drivers of the extreme gains in consumer prices have gone into reverse -- specifically, gasoline, agricultural commodities and global shipping costs -- many of the key underlying inflation pressures are still in place. Supply chain disruptions linger. The war in Ukraine continues. Most importantly, Canadian domestic demand still exceeds supply. The Globe says the BOC remains steadfast in raising interest rates to cool demand.