The Bank of Canada aims to keep inflation at the 2 per cent target, the midpoint of the 1 to 3 per cent inflation-control target range. This target is expressed in terms of total CPI inflation, but the Bank uses a measure of core inflation as an operational guide. Core inflation provides a better measure of the underlying trend of inflation and tends to be a better predictor of future changes in the total CPI.
Inflation-Control Target (backgrounder)
Technical Background Document 1: A Brief Review of the Literature on Whether a Low-inflation Regime Leads to Economic Difficulties
Technical Background Document 2: Lower Rates of Inflation and Improved Economic Outcomes