A sign is pictured outside the Bank of Canada building in Ottawa, Ontario, Canada, May 23, 2017.
REUTERS/Chris Wattie/File Photo Acquire Licensing RightsBy Steve Scherer and David LjunggrenOTTAWA, Sept 19 (Reuters) - The Bank of Canada on Tuesday said recent volatility in headline inflation is not unusual but the underlying trend shown by core measures was inconsistent with bringing inflation down to the 2% target.
"(They) are one reason why we look at measures of core inflation - which exclude components with more volatile price movements - to get a sense of what underlying inflation is."
One of those core measures, CPI-trim - which leaves out spiking mortgage interest costs - has been between 3.5%-4% in recent months.
"Underlying inflation is still well above the level that would be consistent with achieving our target of 2% CPI inflation," Kozicki said.
Persons:
Chris Wattie, Steve Scherer, David Ljunggren OTTAWA, Sharon Kozicki, Kozicki, Macklem, David Ljunggren
Organizations:
Bank of Canada, REUTERS, University of Regina, Reuters, Thomson
Locations:
Ottawa , Ontario, Canada, Saskatchewan, Reuters Ottawa