BoC Deputy Governor Toni Gravelle said in a speech that in the near term, Omicron triggered a sharp drop in oil prices. But further out, “given its potential to restrain the transition to more balanced consumption patterns between goods and services, it could exacerbate upward price pressure on the goods that are experiencing supply constraints.”
“Supply chain disruptions and related cost pressures continue to be an important upside risk,” he added. BoC will “conduct a full assessment of this risk in January when we update our projection for the economy and inflation.”
