In July, they stood at 2.2%, a historical high. For both consumers and professional forecasters, we are also observing a marked increase in the right tail of the distribution – that is, the share of survey participants who expect inflation to stabilise at levels well above our 2% target. [26] Option prices in financial markets paint a similar picture.
Since these actions are taken to prioritize stability even at the cost of sacrificing efficiency to some extent, they could induce upward pressure on prices.