Within these constraints, it will be necessary to carefully manage the allocation of scarce public funds and examine measures to increase the efficiency and effectiveness of government spending, both current and capital.
We now expect it will rise to close to 5 percent by the end of this year, before coming back down to around the 2 percent target by the end of next year. In other words, we continue to expect that inflation will ease back, but relative to our July forecast, it is higher for longer.