While there was a bit of volatility through the year, inflation remained near target and all three measures of core inflation were around 2 per cent. This was in line with our view that the economy was operating close to capacity.
Looking ahead—and consistent with the numbers we recently received for January—we are forecasting inflation to be slightly below 2 per cent for most of 2019. This is largely the result of temporary factors, including the decline in oil prices since last October, and a wider output gap. 1/6  BIS central bankers' speeches  Given this context, let me now turn to household spending.