It gets close to 2% in 2017, converging with headline inflation. The first element in the increase of core inflation is the pass-through of the exchange rate, which is the most important impact. The second source is the indirect effect of oil prices, for instance through transportation costs.
Then we have the closing of the output gap, which might lead to firms regaining some pricing power. Most analysts have been discussing our assumption of the closing of the output gap by end of 2017. Some people argue that the output gap cannot be closed with such high unemployment.