1702 ET - In his second appearance in three days before lawmakers, Bank of Canada Gov. Tiff Macklem reiterates that his big concern is that the recent hike in energy prices will lead to higher costs in other goods and services. Macklem told senators that core inflation, which strips out volatile items like food and energy, remains contained, based on March data. Should core CPI start to rise, "that suggests things are broadening," he says. "If we start to see sign of spreading, yes, we're going to be getting more concerned." In such a scenario, Macklem reiterates the BOC might need "consecutive" rate increases to prevent higher inflation from becoming entrenched. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

May 06, 2026 17:02 ET (21:02 GMT)

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