An extensive literature exists on this topic. The general idea is that, if most prices adjust slowly, the effects of an excessively easy monetary policy will show up first as a sharp increase in those prices that are able to adjust most quickly, such as the prices of commodities (including oil).
We spent considerable time discussing the impact of higher inflation on Canadians and on their inflation expectations. People are increasingly expecting inflation will be higher for longer. But they continue to see inflation coming down, and their longer-term inflation expectations are still anchored on the 2% target. Finally, we discussed the impact of increasing our policy interest rate.