In February 2012, the Bank judged that the inflation rate consistent with price stability sustainable over the medium to long term was in a positive range of 2 percent or lower in terms of the year-on-year rate of change in the CPI, and set the “price stability goal” at 1 percent for the time being.
Over the short term, annual inflation is expected to remain at elevated levels mainly on account of the most recent increases in oil prices and some adverse base effects. Over the medium term, annual inflation is expected to decline gradually, but the extent and pace of its deceleration to a level compatible with price stability depends on several factors.