It is running at about the same pace as a year ago, and wage growth appears unlikely to accelerate. Moreover, if commodity prices level out as markets expect, prospects seem decent for a gradual moderation in inflation over time. Nonetheless, futures markets assessments of these prices have been wrong for awhile. As a result, a benign forecast for inflation carries considerable upside risk.
We are aware that the current spell of high inflation has a consequential impact on many citizens’ personal livelihoods in a time in which both economic and a broader sense of uncertainty have again taken hold. Let me reiterate: our commitment to medium-term price stability is unwavering.