Another approach is to model inflation as a mark-up over input costs, such as growth in labour costs and import prices. ‘Bottom-up’ approaches are also used; for example, forecasting non-tradable and tradable inflation separately, and aggregating those to get a forecast for overall inflation. We can also use time series techniques to estimate the data-generating process only using the inflation data itself.
2  BIS Review 90/2010  Consequently, the policy rate has been cut by a cumulative 350 basis points between November 2009 and March 2010. With the reduction, it is anticipated that credit conditions will gradually ease and credit growth will be restored to ensure a steady growth in output. 4. Outlook for economic growth  [16] The outlook for economic growth remains positive.