Inflation is decelerating quickly. It peaked at 8.1 per cent last summer. It fell to 5.9 per cent in January, and the Bank of Canada predicts it will fall to three per cent by the end of this year.

The Bank of Canada has repeatedly said it’s committed to getting price growth all the way down to two per cent. One of the bank’s deputy governors delivered a speech in Calgary on Feb. 16 titled No Two Ways About it: Why the Bank is Committed to Getting Back to 2%.

“If inflation stays above target for a significant amount of time, then high and variable inflation will likely go hand in hand with a less efficient, more distorted economy,” deputy governor Paul Beaudry said.

But both the forces that shape inflation and the way we think about it have fundamentally changed. After decades of persistently low inflation, most forecasts show price growth is now set to remain stubbornly high.

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