Going forward, we expect it to increase to levels consistent with previous recoveries, driven by the need to expand capacity and to increase productivity in a more competitive international environment.   Inflation in Canada has been broadly in line with the Bank’s April projection. Both total CPI and core inflation are expected to remain near 2 per cent throughout the projection period.
Nonetheless, because the Islamic financial industry is a relatively young one, with many institutions that have not yet experienced a full business cycle, “straight line thinking” seems to have been particularly prevalent in this sector of the industry.