Thank you, Mr. Chair.
Thank you, Governor and Deputy Governor, for being with us today.
Governor, in its most recent deliberations, the Bank of Canada's governing council listed corporate pricing behaviour as one of four key indicators of underlying inflationary pressures. In November 2023, in an article by the CBC, you were quoted as saying:
When input prices have gone up...those are getting passed through much more quickly to final goods prices. So households are bearing the full inflationary impact much more: that's what we can see pretty clearly in the data.
In your view, Governor, why have increases in input prices been passed through to final goods prices more quickly in recent years than in previous decades?