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Philip Cross: Bank of Canada unapologetic about inflation miss

The bank's failure to control prices means Canadians spend more of their budgets on food, shelter, health care and gas

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Affordability has become the No. 1 concern of Canadian households. A major contributor to their anxiety has been inflation consistently exceeding the Bank of Canada’s two per cent target, including a 3.2 per cent increase in the Consumer Price Index in May. Since 2020 the CPI has risen by 26.9 per cent, well above the 15 per cent it would have risen if the Bank of Canada had achieved its goal, as shown in the graph below. Prices jumped eight per cent in 2021 alone and have remained above the Bank of Canada’s target ever since.

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