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Macklem Just Raised the Inflation Alarm: What Monday’s CPI Means for Your Wallet

  Canadian Money Brief  |  Sunday, October 18, 2026  |  Written ahead of Monday’s 8:30 am ET inflation release Bank of Canada Governor Tiff Macklem has just told Canadians what the central bank is about to say on October 28: its inflation forecast is going up, and by a lot. The reason is oil. With the Middle East conflict dragging on, shipments still curtailed and refinery capacity damaged, he said the risk that inflation broadens and lingers has gone up. Speaking to reporters from Bangkok on Saturday, he framed the coming decision as a simple question: will inflation drift back toward 2% on its own, or does the Bank need to raise rates to nudge it there? Monday is the first real clue. Here is what is landing, what economists expect, and what it could mean for your gas bill, your grocery cart, your heating costs and your mortgage. 3.0% August CPI, year over year 3.2% September consensus (Reuters poll) 2.25% BoC policy rate, unchanged for nearly a year Oct 28 Rat...

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Suspected Houthi Rebel Missile Sets Cargo Ship Ablaze in Gulf of Aden

 

On Thursday, a suspected missile attack by Yemen’s Houthi rebels ignited a ship in the Gulf of Aden, while simultaneously, Israel intercepted what appeared to be another Houthi attack near the port city of Eilat.

In the Gulf of Aden, two missiles were fired, leaving an unnamed ship ablaze. The British military’s United Kingdom Maritime Trade Operations center confirmed the incident but provided no further details about the vessel. However, ship-tracking data analyzed by The Associated Press identified the burning vessel as the Palau-flagged cargo ship Islander. This ship had been en route from Thailand to Egypt and had previously sent out messages indicating “SYRIAN CREW ON BOARD” in an attempt to avoid being targeted by the Houthis.

Meanwhile, sirens blared over Eilat early Thursday morning, followed by videos posted online showing what appeared to be an interception in the sky. The Israeli military later clarified that the interception was carried out by its Arrow missile defense system. Although the origin of the fire remains undisclosed, the Arrow system is designed to intercept long-range ballistic missiles while they are still in space.

These attacks occur amidst escalating tensions between the Houthi rebels and Israel. The Houthis have intensified their assaults in response to Israel’s ongoing war against Hamas in the Gaza Strip. Eilat, situated on the Red Sea, is a crucial port city for Israel. In October, the Houthis first claimed a missile-and-drone barrage targeting Eilat, but these attacks have caused no damage in the city.

Since November, the rebels have repeatedly targeted ships in the Red Sea and surrounding waters, jeopardizing trade routes between Asia, the Middle East, and Europe. These vessels often have tenuous or unclear links to Israel, making them vulnerable to Houthi attacks. Notably, some of these ships have carried cargo bound for Iran, the Houthis’ primary supporter.

While the Houthis have not immediately claimed responsibility for either attack, they typically acknowledge their actions hours after conducting them. As the situation unfolds, the international community closely monitors the volatile region, where geopolitical tensions continue to simmer.


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