McKenna quotes the MPR on core inflation measures drifiting downwards even as headline inflation has picked up. The MPR goes onto say: Consistent with persistent economic slack, these measures all remain below 2 per cent, although the range remains relatively wide—between 1.3 and 1.9 per cent.” I’ll say they remain wide. So the core inflation rate is either not far above the 1% lower bound if one looks at CPI-common or just about at the 2% target rate if one looks at CPI-median. So the BOC is free to spin the core inflation numbers anyway it wants and chooses to spin them as an argument for keeping the overnight rate low, pleading economic slack.