World Economy

Rising Oil Prices Stoke Canadian Growth, Inflation Concerns

Higher crude prices are fueling economic expansion in Canada while pressuring inflation across North America, central bank officials said. Bank of Canada Governor Tiff Macklem indicated the institution expects to raise its inflation forecast later this month as energy costs ripple through the economy. In the United States, fresh consumer and wholesale price data confirm costlier fuel is translating into higher prices for goods and services. Policymakers face a challenge balancing growth support against price stability. Market expectations suggest the Federal Reserve will hold interest rates steady at its October meeting. Transportation and logistics operators face mounting pressure from diesel expenses as market conditions shift.