Suppose Output Is at Its Potential Level and Then There

Suppose output is at its potential level and then there is a sudden increase in food and energy prices. This increase

A) is closely related to changes in core inflation so the Bank of Canada uses these for targeting inflation.
B) is not crucial for inflation targeting because the Bank of Canada does not include these in its targets for "core" inflation.
C) would be offset by a decline in the Canadian dollar, making these price increases irrelevant.
D) makes inflation targeting easier because it makes these problems less relevant.
E) makes inflation targeting harder because these are closely related to excess demand in the economy.