BoC On Inflation

The BoC continues to focus on the relatively sticky 3-mth run rates of the median/trim measures and not the sharper moderation in more traditional measures which are tracking at 2-2.5%.

• Latest: “Year-over-year and three-month measures of core inflation are now both running at about 3.5%, indicating there has been little recent downward momentum in underlying inflation. The longer high inflation persists, the greater the risk that elevated inflation becomes entrenched, making it more difficult to restore price stability.”
• July: "Moreover, with three-month rates of core inflation running around 3½-4% since last September, underlying price pressures appear to be more persistent than anticipated. Governing Council remains concerned that progress towards the 2% target could stall, jeopardizing the return to price stability."