As a result, inflation accelerated and its expectations strengthened due to pass through of international oil prices to the domestic market, increases in the electricity tariff and the general sales tax, and rising exchange rate depreciation.
See Douglas Staiger, James H. Stock, and Mark W. Watson (1997), “How Precise Are Estimates of the Natural Rate of Unemployment?” in Christina D. Romer and David H. Romer, eds., Reducing Inflation: Motivation and Strategy (Chicago: University of Chicago Press).