In the wake of the international oil price decline, inflation reached a low of 3,9 per cent in February 2015 and has been increasing steadily since then, and measured 4,7 per cent in June.
The Bank expects inflation to temporarily breach the upper end of the target range during the first two quarters of 2016, with upside risks and pressures from the weaker exchange rate as well as food and electricity prices. Wage settlements in excess of inflation and productivity increases are expected to contribute to the persistence of inflation at the upper end of the range.