The measure that the Bank of Canada regards as the best guide to underlying inflation is the:

Question

Quizplus · Accepted Answer

The Bank of Canada regards the core inflation rate as the best guide to underlying inflation because it excludes volatile factors such as changes in gasoline prices or seasonal factors, which can distort the overall inflation rate. The core inflation rate measures the change in prices for a basket of goods and services that Canadians use every day, like food, shelter, clothing and transportation, but excludes more volatile items like energy and some food prices. This provides a more accurate representation of the overall trend in inflation, and helps the Bank of Canada make decisions about monetary policy.

The Measure That the Bank of Canada Regards as the Best