Unfortunately, that is not an easy question to answer. The results from the Survey of Professional Forecasters, readings on household opinion such as the Reuters/Michigan survey, and the spread between standard Treasury securities and Treasury inflation-protected securities – taken together – suggest that long-term inflation expectations are currently around 2 percent, although this guess is far from certain.
Given my estimate of the current level of long-run inflation expectations as well as the likelihood of some easing of resource pressures in labor and product markets, I expect that core inflation will slow  BIS Review 38/2007  3  to around 2 percent over the next couple of years.