While many reasons have been pointed out, I will point out particularly these three. First, as accommodative financial environment continued on a global scale up to the middle of the 2000s and price stability and high economic growth were achieved, many “excesses” were generated in the risk-taking activity of various economic entities.
The disciplined monetary policy stance and continued sound control over the government finances were already set to reign in the inflation spiral, and are now receiving some additional help from the relatively strong exchange rate - stronger than had been incorporated in the central scenario of the October 2002 projections.