Of course those “temporary factors” never reversed and inflation persisted for a decade. Inflation expectations had been fatally affected by a combination of high inflation and policy  5  On the redistributive properties of monetary policy during the crisis, see Goodfriend (2011).
Thus, as firms' and households' cautious sentiment changes and further price rises come to be observed widely, on the back of the positive output gap, the year-on-year rate of change in the CPI is likely to increase gradually toward the price stability target of 2 percent, in line with a rise in inflation expectations.