The Bank also developed a methodology to better incorporate and monitor the vast amount of information on inflation expectations into the Bank’s policy making. 7 The analysis shows that low inflation outcomes have lowered expectations of inflation at shorter horizons, which may dampen near-term price- and wage-setting.
However, analysis points to longer-term inflation expectations remaining well anchored close to the mid-point of the bank’s inflation target (figure 11). Figure 11: Inflation expectations curve (annual, by number of years ahead)  Source: ANZ Bank, Aon Hewitt, Consensus Economics, RBNZ estimates.