The impact of ERPT does not typically reflect changes in the underlying trend of inflation, which is affected by the degree of excess capacity in the labour market and in the economy more broadly.14 At the same time, most measures of core inflation tend to be affected by ERPT in varying degrees because they are sensitive to the relatively broad-based price movements caused by ERPT in Canada.
Still, on average, these measures were found to have somewhat lower pass-through from the exchange rate compared with CPIX. In particular, CPI-trim and CPI-common attach relatively more  14  See L. Savoie-Chabot and M. Khan, “Exchange Rate Pass-Through to Consumer Prices: Theory and Recent Evidence,” Bank of Canada Staff Discussion Paper No. 2015-9 (October 2015).