In many respects the economy is performing well: economic growth is above trend; employment growth has been strong; labour force participation is high; and the unemployment rate continues to decline.
Furthermore, real wage growth has been quite strong; until recently, the household savings rate has been rising; and increasing economic growth has not been accompanied by the sharp deterioration in the current account that has accompanied previous recoveries. Not least, the cost of living, as measured by the consumers price index, has been rising slowly.