BoC's Kennedy says oil prices lifting inflation

In a speech on Thursday 27 May, Bank of Canada Deputy Governor Sheryl Kennedy said that higher oil prices and strong global demand are pushing Canada's inflation rate higher than was forecast in the April Monetary Policy Report.

She said the central bank hasn't changed its forecast for core inflation, its preferred measure when deciding to change interest rates to keep prices advancing at a 2 percent pace. The core rate, which excludes volatile energy and food prices, will average 1.5 percent