The adjustment has been smooth, without large increases or abrupt changes of direction. During this period, headline inflation has made temporary departures from the target range, but core has remained within the target range. Longer-term inflation expectations have stayed close to the top of the target, and we watch them very closely for signs of breaking away.
Although nominal wage gains  1/3  BIS - Central bankers' speeches  have slowed somewhat in recent months, they remain above what is consistent with 2 percent inflation and current trends in productivity. Strong wage growth is good for workers but only if it is not eroded by inflation.