Compared to the 6 per cent inflation realised over Q2 2021 to Q1 2022, the coming twelve months (Q2 2022 to Q1 2023) are projected to see cumulative headline inflation at 3.7 percent. In the subsequent two years (Q2 2023 to Q1 2025), inflation per year is projected to be slightly below 2 per cent.
In essence, Chart 9 indicates that one more year of inflation momentum above target is expected by market analysts before returning to the target level. In relation to HICPX, the next twelve months are projected to see cumulative core inflation at 2.3 per cent, while core inflation over Q2 2023 to Q1 2025 is expected to average 1.9 per cent per year.