ottawa—canada’s labor market needs to weaken to help cap domestic inflationary pressure and bring the consumerprice index back down from elevated territory the country’s top central banker said friday speaking to reporters from washington bank of canada gov tiff macklem reiterated that interest rates will need to move higher to tame annual inflation which is running at 7 or well above the central bank’s target of 2 underlying inflation which strips out volatilepriced items like food and fuel shows no sign of dissipating he added