Unfortunately, that is not an easy question to answer. The results from the Survey of Professional Forecasters, readings on household opinion such as the Reuters/Michigan survey, and the spread between standard Treasury securities and Treasury inflation-protected securities – taken together – suggest that long-term inflation expectations are currently around 2 percent, although this guess is far from certain.
The tourism industry has the greatest potential to be the engine of growth in the next two years when the other sectors of the economy may not be doing that well. It is my hope that the players in the tourism industry will continue to be innovative.