The Liberal government has been calling inflation a “global phenomenon,” but Canada’s central bank governor says that it’s “increasingly” a Canadian affair.
“Some of this inflation reflects global developments that we don’t control but inflation in Canada increasingly reflects what’s happening in Canada,” Bank of Canada Governor Tiff Macklem told the Halifax Chamber of Commerce in a speech on Oct. 6.
“The demand for goods and services here at home is running ahead of the economy’s ability to supply them.”
Macklem explained pandemic lockdowns caused the rate of inflation to fall below zero and prolonged deflation was a “real concern,” hence the bank provided “exceptional monetary support.”…