As I explained earlier, the forecasts of Policy Board members for the year-on-year rate of change in the CPI are around zero percent for fiscal 2005 and slightly positive for fiscal 2006.
Price developments may deviate from the forecasts due to deviations of economic activity from the projected path, and also to factors unique to prices, for example, emergence of inflationary sentiment or the effects of various measures to promote competition such as deregulation.