12 The relatively high inflation rate for food in stores in 2019 reflects a combination of supply issues (bad weather, African swine fever), while for the other items it is due to the impact of tariffs imposed on Canada– US trade at that time.
13 While this is not something new, the difference between households’ perceptions in the second quarter of 2020 and April CPI inflation was particularly acute. -9At the Bank of Canada, we are mindful of the impact that these shifts in spending are having on measured CPI inflation because our 2 percent inflation target for monetary policy is defined in terms of the CPI.