Indeed, by January 1992, inflation was already close to 2 per cent, down from its average of over 5 per cent between 1988 and 1991. Although at times it has approached the boundaries of the range, and exceeded it earlier this year, over the medium term, the average inflation rate has remained around 2 per cent.
Indeed, over the six-year period from 1996 to 2002, it was just under 2 per cent. Moreover, not only has the inflation rate fallen, it has become more stable. In other words, movements away from the target have not been persistent. When inflation has moved away from the midpoint, it has shifted back towards 2 per cent as the shocks have worn off.