But recent data releases clearly show an accelerating trend at both producer and consumer levels. The Bank’s CPI forecast has been adjusted higher, but still reflects that inflation should remain within the target range over the forecast period to the end of 2012.
CPI inflation is forecast to average 4,7 per cent in 2011 and 5,7 per cent in 2012, peaking at 5,8 per cent in the first quarter of 2012. Much of the increase in inflation is based on higher assumptions for international oil prices.