Canada's headline inflation climbed from 1.8 percent in February to 3.2 percent by May, a run the Bank of Canada has attributed largely to energy prices tied to the Middle East conflict. Core inflation has stayed closer to two percent, letting the Bank hold its overnight rate three times while calling the effect temporary. A fresh US sanctions snapback over the Strait of Hormuz this week tests whether that underlying conflict, and the inflation it has driven, is still temporary heading into the Bank's July 15 decision.
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