Since 1995, the target range has been 1 to 3 per cent, with the Bank’s monetary policy aimed at keeping inflation at the 2 per cent target midpoint. It is important to stress that the target is for total CPI inflation, which is the best measure of the overall cost of living for Canadians.
We do not target or try to control prices of individual goods and services. With 2 per cent inflation, there will always be some prices rising more quickly and others more slowly. Central to a market-based economy is the role of relative price signals in allocating resources.