We know this because we began to collect the views of Canadian households about inflation in 2014 through the CSCE I mentioned earlier. This survey asks individuals what they think the inflation rate is now and what they expect it to be in the future. Let’s look at some observations from the most recent CSCE (Chart 1), which are typical of past surveys.
2 In hindsight, it is not hard to see how these various factors combined to create a perilous situation for consumers, investors, and the broader economy.