That inflationary pressures are still low is suggested also by core inflation, which declined to 0.8% year-on-year in March and April, its lowest level since changes in consumer prices have been used as a measure of inflation.
Compared to the previous Inflation Report, short-term inflation expectations fell even more – to 2.5% for the financial and 2.8% for the corporate sector, remaining anchored within the target corridor. These are the main reasons why the new medium-term inflation projection is somewhat lower than the previous one.