Chart 6:  Measures of core inflation have risen in line with the rapid absorption of past excess capacity Year-over-year percentage change, quarterly data % 2.5  0.0 -0.5  2.0  -1.0 -1.5  1.5  -2.0 -2.5  1.0 2014  2015  2016  2017  Integrated framework output gap (right scale)  CPI-trim (left scale)  CPI-median (left scale)  CPI-common (left scale)  Sources: Statistics Canada and Bank of Canada estimates  -3.0 2018  Last data plotted: 2018Q1  9  The higher the projected growth rate of potential output, the faster the economy can grow without inflation rising persistently above our target.
As financial institutions offer more sophisticated products and services, there will be more associated risks in their on-going risk management framework. This is particularly true as they grow in size and complexity, and their ability to identify, define, measure, manage, and organize to manage their risks are of utmost importance and major concern, especially from the supervisory point of view.