Nevertheless, the year-on-year decline in the CPI is likely to continue for a relatively long time, because substantial slack seems to have emerged in the economy due to the significant economic downturn from autumn 2008 and because the pace of improvement in the supply-demand balance is expected to be slow.
The second set of policies is intended to reduce poverty by providing consumption entitlements to the poor in the short term and redistributing incomes in favour of the poor. Public provision of education, health, nutrition and housing form the core of this strategy.