Thank you, Mr. Chair.
Mr. Baker spoke once again about the main causes of inflation, this time in reference to the housing sector and earlier in reference to the economy as a whole.
When we look at the effect of inflation is having on the economy, we are concerned that society as a whole may come to expect higher rates of inflation. That would mean that the various economic agents would no longer expect inflation of 2% but a much higher rate of inflation. It could have a snowball effect and become a matter of concern.
Mr. Arora, do you currently see any signs of such a phenomenon in the measures of various prices in the economy? For example, could businesses increase their prices to safeguard against future inflation? The same thing could happen with some wages. I am not judging those people or businesses. I just want to try to figure out whether there could be a snowball effect if people expect inflation to be higher than 2%.
Do your statistics currently give you any indications in that regard?