Finally, an increase in annual inflation so far this year is due to negative supply shocks, reflected especially in the noncore component of the CPI. Given the temporary nature of recent pressures, it is likely that inflation will soon resume a downward trend toward the 3 percent permanent target. 4  BIS central bankers’ speeches
This is assisting with the adjustment and means that, notwithstanding the changes in the housing market, we still expect consumption growth of around 3 per cent over each of the next couple of years. We do, though, need to keep a close eye on the housing market and housing finance.