16 Of course, an extended period of high goods and services inflation resulting from a series of demand and supply shocks associated with the pandemic and the war could lead to a rise in inflation expectations, which would make it much more difficult to bring inflation down.
17 That is why it has been important for monetary policy to take a riskmanagement posture to defend the expectations anchor. And the evidence from marketand survey-based measures suggests that longer-term inflation expectations are well anchored, while year-ahead measures have recently declined but remain elevated.