Bank of Canada Governor Tiff Macklem says inflation risk is on the rise, with higher energy costs topping Canada’s incoming dollar-for-dollar tariffs on U.S. goods as the biggest potential driver of rising prices for consumers and businesses. Macklem’s remarks on Wednesday came after Canada’s central bank held its benchmark interest rate steady at 2.25 per cent, as widely expected by economists. The central bank lowered its policy rate to its current level in October of last year. This latest announcement marks seven consecutive times it has left its trend-setting policy rate unchanged. “The counter-tariffs, and indeed the U.S. tariffs … will add costs for some businesses,” Macklem told reporters in Ottawa. “These tariffs are very steep, but they are applied to a relatively narrow base.”The bigger issue, he said, is the war in the Middle East.