The first point is that the negative contribution of the decline in energy prices to the annual CPI inflation rate for all items less fresh food is expected to dissipate and almost no effects of this are projected to be seen in early 2017.
The second point is that firms' price-setting stance is expected to revert to raising prices as private consumption heads toward a moderate recovery. The third point is that upward pressure on wages is expected to rise further as labor market conditions tighten. Inflation expectations are likely to increase again if the observed inflation rates rise with these factors.