Annual consumer price index (CPI) inflation eased to 6.3% in 2 See Bank of Canada, “Labour market recovery from COVID-19,” for more details. -8-  December from its peak of 8.1% in June. This is a welcome development, but inflation is still too high. So far, the decline in inflation mostly reflects lower prices for energy, particularly for gasoline.
With support of the government, the RCCs have been released from financial burdens, but this does not mean we have completed the reform. Whether we could make further progress in reforming the RCCs depends critically on the transformation of the operating mechanisms and the financial sustainability of the RCCs.