Canadians could wind up with a bigger grocery bill in the coming months as a major price "shock" for diesel and crude oil works its way through supply chains, Scotiabank says.

As global oil supplies continue to tighten up amid ongoing geopolitical conflicts that have pushed up fuel prices, the governor of Texas has declared a state of emergency.

The U.S. is reportedly threatening to ban exports of diesel fuel to parts of Europe, unless countries like Germany and France release more of their diesel reserves.

Consumers could be facing higher borrowing costs for longer as bond markets are once again signalling rising economic risk to the finance and investing community.