Given the recent drop in gasoline prices and with futures prices suggesting persistently lower oil prices, the Bank expects total CPI inflation to remain noticeably below the 2 per cent target over the coming year before returning to target around mid-2013.   The inflation outlook in Canada is subject to significant risks.
BIS central bankers’ speeches  1    The three main upside risks to inflation in Canada relate to the possibility of higher global inflationary pressures, stronger Canadian exports and stronger momentum in Canadian household spending.