Excluding the one-time effect of the January GST cut, total CPI inflation is 2.4 per cent, and core inflation (which excludes the more volatile components) is 1.5 per cent. Staying on top of all the forces at play is an essential preoccupation of the Bank of Canada.
Another interesting conclusion that can be drawn from ESRB data is that macroprudential authorities have often preferred to use instruments targeted at credit standards, commonly known as borrower-based measures, namely to address the systemic risk arising from developments in the residential real estate market.