ARTIFICIAL OIL PRICES DO NOT INFLATION MAKE:

Canadian inflation edges up (TAVIA GRANT, 5/18/06, Globe and Mail)

Canadian inflation quickened to a 2.4-per-cent annual pace last month, although cheaper imports sent core prices unexpectedly lower, Statistics Canada said Thursday.

While overall inflation rose on higher gasoline prices, core consumer price inflation – which strips out the eight most volatile items in the index – unexpectedly cooled. Core prices, which have been stable over the past eight months, eased to 1.6 per cent from 1.7 per cent.