In relation to the Survey of Professional Forecasters, Chart 10 conveys two messages.
First, over the course of 2021, there was a significant re-anchoring of longer-term inflation expectations at our two per cent target: the distribution in the Q1 2021 survey was similar to the prevailing pattern for an extended period before the pandemic with the modal expectation at around 1.6 per cent, whereas the distributions in the Q1 2022 and Q2 2022 surveys show the modal expectation at 2.0 per cent and a significant rightward shift in the mass of the distribution.