Bank of Canada Could Muddy Price Signals With Aggressive Monetary Policy

Bank of Canada Governor Tiff Macklem participates in a media availability at the bank in Ottawa on Dec. 15, 2021. Justin Tang/The Canadian Press

Commentary

The rate of inflation, as measured by the Consumer Price Index (CPI), increased substantially in all developed countries in 2021 including Canada, where it rose 3.4 percent compared to an average annual increase of 1.88 percent from 2000 to 2020.