Following the global financial crisis, total inflation in Canada fell sharply, to a low of –0.9 per cent in July 2009, largely as a result of a drop in the world price of oil, which plummeted from $ per barrel in the summer of 2008 to $ later that year.
With the resumption of growth in most advanced economies, global oil prices rebounded in 2010 to $ per barrel, and total inflation rose to more than 3 per cent in 2011 (Chart 3). By comparison, core inflation remained relatively stable around 2 per cent during this period.