The series of targets announced in the agreement was aimed at bringing the 12-month CPI inflation rate down to 2 per cent (again, plus or minus 1 per cent) by December 1995. The decline in inflation was achieved in fairly short order, indeed faster than was consistent with the targets. By January 1992, inflation was close to 2 per cent.
The agreement with the government has been renewed three times; in each case, the midpoint of the inflation target range has been confirmed at 2 per cent. Through this period—and with two different governments—there has been a growing shared appreciation of what inflation control has been contributing to Canada’s good economic performance.