As a result of 15 years of deflation, a deflationary mindset -- that is, the perception that prices will not increase easily -- has become deeply entrenched among firms and consumers, and there is still a long way to go before the price stability target of 2 percent  7  is achieved (Chart 7).
For its part, the Bank of Canada has a wide range of tools and policy options that it will continue to deploy as appropriate in order to ensure that Canadians can seize these opportunities in an environment of domestic macroeconomic and financial stability. Fall may be around the corner, but we all know that Canadians are at their best during winter.