However, in terms of achieving the price stability target, more important than the monthly figures is whether the mechanism underlying the upward trend in inflation remains in place. The trend in inflation is determined by two factors, namely, the output gap of the economy and inflation expectations.
A well-educated and flexible labour force The most important factor of production and our biggest strength is our labour force. Canadian workers are well educated, and our labour market is increasingly flexible. High-school completion in Canada is near universal, and Canadian students perform well relative to their peers, based on results of international assessments.