Governor of the Bank of Canada CHECK AGAINST DELIVERY to the Certified

These past few months have been busy for central bankers, to say the least, and the past few days are certainly no exception. While developments on Wall Street have garnered much attention, the cost of living has also been an issue for us all, whether we’re buying gas at the pumps, booking an airline ticket, or just picking up a loaf of bread at the grocery store. Of course, the cost of living is always front and centre for us at the Bank of Canada, where our primary monetary policy objective is to ensure that inflation remains low, stable, and predictable over the medium term. Some periods, however, are clearly more challenging than others in terms of meeting this objective. To set effective policies in both tranquil and turbulent times, we must understand what drives inflation and be able to anticipate its future movements.