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Lane Says Bank of Canada May Adjust Core CPI Measure in 2016

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Canada’s central bank may adjust the way it measures “core” consumer prices when it renews an inflation-targeting agreement with the government next year.

The Bank of Canada’s current benchmark of core prices that excludes eight volatile items such as fresh fruit is underperforming relative to other indexes under consideration for next year, deputy governor Tim Lane said Tuesday in Halifax, Nova Scotia. The current index, known as CPIX, has been the central bank’s main guide since 2001 on whether the total inflation rate will stay near the bank’s 2 percent target.