A robust agricultural sector cushioned the rural economy in our and other regions across the nation during the recent recession, and the industry’s strength is supporting further improvement in the rural economy today. In 2010, strong demand and tight supplies for most farm commodities contributed to a sharp rebound in farm profits, which then supported sales in farm equipment and other farm-based industries.
Lower energy prices have led to a downward revision to the near-term projection for total CPI inflation. Total inflation (which includes the temporary impact of the GST reduction) will likely average about 1 1/2 per cent through the second quarter of 2007, before returning to the 2 per cent target and remaining there through to the end of 2008.