High and persistent levels of household debt were a main factor holding back economic recovery after the Global Financial Crisis, [4] just as it played an important role in explaining the consumption collapse during the 1930s. [5] In both cases, a shock to household balance sheets resulted in a reduction in consumption with signiﬁcant macroeconomic effects.
And, the year-on-year rate of change in the CPI excluding volatile food would start to gradually increase and was likely to reach 1 percent in the not so distant future from fiscal 2014 onward.