After peaking at 8%, inflation is dropping and currently sits at 5.2%. Canada is one of the few countries where monetary policy can have an impact on inflation because mortgage rate hikes are reflected in inflation. If mortgage rate increases are excluded, inflation is now at 4.8%. I fully expect it to drop to 3% this summer.
I'm going to address the issue of house prices right now. In response to the earlier question, house prices during the pandemic in the United States increased by 45%, compared to 40% in Canada. With the interest rate hikes in Canada over the past few quarters, housing prices have been dropping—