Figure8-11The Cost of Disinflation There were two major periods of disinflation in modern Canadian history, in the early 1980s and in the early 1990s. This figure shows the track of the unemployment rate and the “core” inflation rate, which excludes food and energy, during these two episodes. In each case bringing inflation down required a temporary but very large increase in the unemployment rate, demonstrating the high cost of disinflation.
Source: Statistics Canada.
Source: Statistics Canada.