However, the picture changed in 2008 when expectations increased significantly above the upper end of the inflation target range for all years in the forecast period. This deterioration is consistent with other market-based measures of inflation expectations. During the past year there have been a number of factors that impacted on inflation and that influenced monetary policy decisions. These included endogenous and exogenous factors.
The international oil price continued to put pressure on domestic inflation. Oil prices were affected by strong global demand, particularly from fast-growing emerging-market economies, most notably in Asia. Numerous oil-supply disruptions, mainly a result of geopolitical developments and adverse weather conditions, also affected the oil market.