Will the oil price shock reignite broad inflation in Canada?

About this episode

The episode discusses the implications of high oil prices on inflation in Canada, comparing the current situation to past events.

Global oil prices remain high as the Middle East conflict persists, raising questions about a potential comeback of the broad-based inflation Canada experienced during and after the pandemic. But, this shock is fundamentally different from the past. Unlike 2022, when the Russia-Ukraine war compounded systemic supply chain disruptions from pandemic lockdowns, today's commodity shock is narrowly concentrated in oil, and unfolding at a time when global supply chains are more resilient. In this episode of the 10-Minute Take, join RBC Economics' Claire Fan and Carrie Freestone as they discuss: How the scope and scale of the commodity price shock differs from the Russia-Ukraine war in 2022. What localized and contained supply chain disruptions this year could mean for global inflation. Why Canadian consumers could be less tolerant of rising prices than they were in 2022.

People in this episode

Guests: Claire Fan, Carrie Freestone

Topics covered

• oil prices
• inflation
• Canada
• supply chain
• economic impact
• consumer behavior

Keywords

• oil price shock
• broad inflation
• Canada
• supply chain disruptions
• consumer tolerance
• Middle East conflict

Mentioned in this episode

Organizations: RBC Economics

Places: Canada, Middle East

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