Economists have cut forecasts for economic growth in the second quarter following the dismal 1.8 percent pace in the first, with indicators of industrial production, consumer spending and unemployment all appearing soft. Economists said they still foresee a stronger second half, as consumers and businesses adjust to the higher oil price Ian Shepherdson, U.S. economist for High Frequency Economics, said the sharp rise in the price of oil has helped stifle job creation. "The trend in claims has nudged up a bit as companies have responded to the rise in oil prices," he said.

Lately, oil price is extremely volatile due to disappointing economic data from the US and eurozone, uncertainty about a potential debt-restructure in Greece and weaker oil demand from the US, China and Japan. Gasoline demand is expected however to pick up in the coming weeks as Americans take to the road for their summer holidays. On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for July climbed to $100.35 a barrel from $97.41. Gold and Silver remain to be the safest investments during problematic economic times. As a result the precious metals have increased in price: on the London Bullion Market, gold jumped to $1,533 an ounce from $1,491 the previous week; Silver rose to $37.69 an ounce from $34.80.

Neither the Republicans' nor the Democrats' policy proposals have much chance of having a significant effect on prices. Your taxis and town cars and commutes are not going to be made any cheaper-at least in the near-term-by ending oil company subsidies or drilling in the Arctic National Wildlife Refuge There isn't much that politicians can do to lower gas prices, but there is some good news for politicians panicked about the potential effect of high gas prices on their re-election chances.

Federal Industry Minister Tony Clement said Thursday he wants the petroleum industry to explain how it sets gasoline prices. "No one can understand why last year, when oil per barrel was around $140 or $150, we were paying $1.37 per litre, when this year oil is south of $98 a barrel and yet we're paying more," Clement said.

The new Bank of Canada commodity price index (BCPI) is a chain Fisher price index of the spot or transaction U.S. dollar prices of 24 commodities produced in Canada and sold in world markets, with weights updated on an annual basis. The new Fisher BCPI is also updated using recent commodity production data. The new index, therefore, produces a more accurate and more representative commodity price index.