In addition, unanticipated increases in indirect taxes and administered prices may aggravate the outlook for inflation. In the current context of strong inflationary pressures, it is essential to maintain longer-term inflation expectations solidly anchored at levels consistent with price stability and to avoid that the current inflation rates become entrenched in private sector inflation expectations.
This is not only the task of the central bank. All parties, in both the private and the public sector, can give a key contribution to maintaining price stability by abstaining from any practices that may fuel broad-based second-round effects.