When Paul and I appeared before this Committee last October, we said that the global and Canadian economies were continuing to grow at a solid pace, that our economy appeared to be operating at full production capacity, and that it would remain at capacity in 2006 and 2007.
Total and core inflation were projected to average close to 2 per cent, beginning in the second half of this year. This projection assumed oil prices at roughly $ per barrel, a level then indicated by futures prices.