The bank also warned that retaliatory tariffs by Canada and other nations against the U.S. if Donald Trump imposes tariffs could cause a period of inflation.
Rising prices for housing, food and energy pushed the Consumer Price Index up at a three per cent annual rate in January versus 2.9 per cent the month before.
U.S. President Donald Trump's steel and aluminum tariffs are coming in a month. Some auto experts are advising Canadian consumers to accelerate their car-buying plans in response.