This was certainly the case in Australia, where financial deregulation preceded other important deregulation – most notably, in the labour market. So there is no simple answer in sequencing.
BIS central bankers’ speeches  1  points to at least some ongoing role for slack in helping to explain movements in inflation, this influence is typically estimated to be modest in magnitude, and can easily be masked by other factors. 2 In the first instance, as already noted, core inflation can to some extent be influenced by oil prices.