And while most of the policy responses fall outside the remit of central banks’ mandates, their contribution to price and financial stability remain essential if development goals are to be achieved.
On a longer horizon, the widely watched five-year forward five-year-ahead indicator recovered strongly from its low point in January and at the time of writing suggests an inflation of 1.7%, a level which minimises concerns about a possible de-anchoring of inflation expectations. Having fluctuated around its long-term average of 2.3% for most of 2013, the five-year forward five-year ahead implied rate declined in 2014.