The Globe and Mail reports in its Friday edition that the Bank of Canada is grappling with a series of economic shocks. A Canadian Press dispatch to The Globe reports that senior deputy governor Carolyn Rogers says, "Canadians have faced a lot of economic upheaval over the past five years, and the next five may not be much calmer." She says the oil price shock from the Iran war is affecting consumers and businesses, but it is too early to determine its impact on growth and inflation in the coming months. Financial markets shifted late last week to favour interest-rate hikes from the BOC and other central banks later this year amid uncertainty in the Middle East, though many economists argue the slow recovery in the Canadian economy does not merit higher rates right now. Ms. Rogers says that, in addition to the recent shock from the Iran war, the economy is now dealing with structural changes related to U.S. protectionism, stalled population growth and the rise of artificial intelligence. She says the BOC is expecting a "more variable inflation environment" in the years ahead, given these structural shifts. The annual inflation rate fell to 1.8 per cent in February. Higher gas prices will move inflation up.