High interest rates, the highest in 22 years, will continue into 2024, Bank of Canada Governor Tiff Macklem said yesterday. Macklem said he has “been surprised” by persistently high prices for groceries.

“We have been surprised,” Macklem told reporters. The Bank raised its key rate on interbank loans by a quarter point to five percent, the highest level since April 17, 2001.

“Inflationary pressures are proving more persistent,” said Macklem, adding: “Meat’s up six percent, bread’s up 13 percent, coffee’s up eight percent, baby food’s up nine percent. If you look at food overall it is up nine percent. Rent’s up six percent.”