Remember the “cauliflower crisis” of 2016? Bank of Canada Governor Stephen Poloz does. It’s stamped in his memory as an excellent example of how the press makes his job difficult.
“Every individual has a different personalized inflation rate, and it is often enhanced by media attention,” Poloz said during testimony at the Senate Banking Committee in April. “You remember last year it was all about the $9 cauliflower, but this year there were no articles about the 69-cent cauliflower. That is the way it is. Now the articles are about expensive gas, but two months ago there were no articles about the inexpensive gas. That is just life. We try to see through those things and these measures help us do that.”
Scott Tannas, a Conservative from Alberta, had asked Poloz to explain the difference between inflation and core inflation. The “measures” to which Poloz refers above are the three gauges of core inflation the central bank adopted last autumn to give it better view on where prices are headed.
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