I should add that many other countries have also seen a sustained decline in inflation over the past decade and a half. 2  BIS Review 107/2006  In Canada, the variability of inflation, measured by its standard deviation, declined in tandem with the rate of inflation. This pattern of declining volatility was equally true for core inflation and other underlying measures of inflation.
Measures to contain the spread of the coronavirus (COVID-19) have largely halted economic activity in all the countries of the euro area and across the globe. Survey indicators for consumer and business sentiment have plunged, suggesting a sharp contraction in economic growth and a profound deterioration in labour market conditions.