We're seeing it mostly on the goods side, and especially on the energy side, I would say. Energy is the main contributor to the disinflation so far. When you look at food, obviously it's pretty sticky. When you look at one measure of core inflation, which is inflation excluding food and energy, it hasn't moved that much. It's stopped accelerating since last summer, but it hasn't moved that much lower.
So yes, I would say it's in goods. That's related to what we're seeing internationally in terms of the easing of supply chains. In particular, central banks will be focusing on services, excluding shelter, which, as Mr. Gregory mentioned, is seeing the effect of higher mortgage interest costs. We expect that to continue. The contribution of shelter will be very sticky, and certainly higher than what we had seen prior to the pandemic.
That means the Bank of Canada will need to see services inflation slow down quite significantly if it hopes to bring inflation down to 2%. That will likely be the tricky part. We expect 2% to 2.5% at the end of this year. That's going to be the low-hanging fruit. Going the full way to 2% will be more difficult because of those factors of stickiness.