Article content

OTTAWA — Is the Bank of Canada facing a credibility crisis?

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or With inflation climbing higher, is it time for a reality check at the Bank of Canada? Back to video

According to today’s CPI report, the price of this Canadian treat has surged by 9.3% from last month and 20.5% in the past year — check out this chart

[/np_storybar]

Perhaps, but monetary policymakers are not alone in appearing offside on their consumer price projections. Many analysts were as well.

True, Stephen Poloz and company were flagging the downside risks to inflation only weeks ago and holding to the possibility the bank’s trendsetting interest rate could just as easily go down as go up.

Now, the threat of higher inflation is back — big time. And the question is: Will Mr. Poloz acknowledge the renewed upside risks on prices, or wait for a much bigger picture to emerge in the coming months?

Canada’s consumer price index — the basket of items tracked by Statistics Canada — rose 2.3% in May from a year earlier, when the annual rate of CPI stood at 2%.