After splicing, a 50-basispoint constant factor is subtracted from the series to put it on a PCE price index basis, on the assumption that survey respondents reported their expectation for CPI inflation, not PCE inflation. (The average wedge between CPI inflation and PCE inflation was about 50 basis points from 1980 through 2006.)
Therefore, we need to put into the 2021 budget already growth accelerators to exit the crisis, and to invest in issues that support productivity, such as human capital, decreasing bureaucracy and regulation and increasing the efficiency in the public sector, in physical capital and infrastructures —details on the implementation of these items can be found in the Bank of Israel’s Productivity Report.