Services price inflation also remains high and is expected to decline only gradually. Continued strong demand for services and the still-tight labour market are putting upward pressure on many services prices. As the economy slows and the labour market comes into better balance, we expect to see services price inflation decelerate and measures of core inflation decline further.
And so it is a matter of course that in most countries, the public sector shares in individuals’ income to a certain degree by imposing taxes, with the majority of these countries imposing progressive taxes. This enables the public sector to supply public goods.