Bank of Canada Governor Tiff Macklem said Saturday that the central bank expects to raise its quarterly inflation forecast significantly this month because crude oil and petroleum product prices have stayed high.

Macklem spoke to reporters on Oct. 17 on a conference call from Bangkok, where he was attending the International Monetary Fund and World Bank meetings. The new inflation and growth forecasts will feed into the bank's rate decision on Oct. 28.

Bank of Canada Expects Sharply Higher Inflation Outlook as Oil Prices Surge

"With the (Middle East) conflict ongoing, shipments still curtailed and refinery capacity damage, the risk that inflation broadens and becomes more persistent has gone up," Macklem told journalists, according to Reuters.

Canada is a net energy exporter, so expensive oil cuts both ways. Macklem said higher prices are supporting growth through energy exports, incomes, government revenues and investment while also pushing inflation up, Bloomberg reported.