Tiff Macklem: What's happening to inflation and why it matters

Remarks by Mr Tiff Macklem, Governor of the Bank of Canada, at the Halifax Chamber of Commerce, Halifax, Nova Scotia, 6 October 2022.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
07 October 2022


Good afternoon. I am glad to be with you here in Halifax. It's been a tough couple of weeks for Atlantic Canada. I want to extend my condolences for the lives lost during the terrible storm. My sympathy goes out to all of those affected across the region, including Bank of Canada employees in our office here in Halifax. The damage and destruction bring a new wave of hardship after what has already been a difficult couple of years.

Canadians have faced historic challenges since 2020. And recovering from these challenges-just like rebuilding from the aftermath of Hurricane Fiona-will take time. The global COVID-19 pandemic has sparked a challenge that is particularly pressing to the Bank of Canada-high inflation. And that's what I want to talk about today.

High inflation is making life more difficult for Canadians, especially those with low or fixed incomes. Some of this inflation reflects global developments that we don't control, but inflation in Canada increasingly reflects what's happening in Canada. The demand for goods and services here at home is running ahead of the economy's ability to supply them. Businesses are having a hard time finding enough workers. And what started as higher prices and delays for many internationally produced goods has broadened to many services.