The year-on-year rate of change in the CPI increased to 0.9 percent in October and is expected to hover at slightly above 1 percent  4  BIS central bankers’ speeches  through the first half of 2014. Given that deflation has continued for nearly 15 years, those are important changes.
If people actually experience a rise in prices, inflation expectations are supposed to change substantially. The Bank holds the view that, due to a backwardlooking element together with a forward-looking element, inflation expectations will continue on a rising trend, gradually converging to around 2 percent – the price stability target.