Construction costs have increased 37% since 2003, adding an estimated 0.5 percentage points per annum since 2003 to annual CPI inflation. 15 In the current cycle it has been the indirect effects of increasing house prices which have also been an important driver of inflation.
2/3  BIS central bankers' speeches  As a general rule, the running of budget surpluses during phases of strong economic performance is a precondition for the running of stabilising, counter-cyclical fiscal deficits in the event of a future downturn.