While there is likely to be at least a modest rebound in benefit costs, we should add to the list of factors restraining measured inflation the one to two-tenths decline in CPI inflation associated with technical revisions to be introduced by the BLS this month.
•  This recovery should be supported by the following factors: -  the gradual rebound in external demand;  -  the end of the stock adjustments in Canadian and U.S. residential housing;  -  the strength of Canadian household, business, and bank balance sheets;  BIS Review 552009  3  -  our relatively well-functioning financial system and the gradual improvement in financial conditions in Canada;  -  the past depreciation of the Canadian dollar;  -  stimulative fiscal policy measures;  -  the timeliness and scale of the Bank's monetary policy response.