As Chairman Bair recently pointed out, one possible model is the process currently in  BIS Review 87/2008  5  place under the Federal Deposit Insurance Corporation Improvement Act (FDICIA) for dealing with insolvent commercial banks.
If this is the case, and provided that one-off shocks to prices from other sources such as those seen in 2004 are not repeated, annual inflation rates should drop below 2% in 2005. However, there are several upward risks to the projections for inflation. Concerns relate in particular to oil price developments, which may continue to have a visible impact on inflation.