In sum, since we started inflation targeting in the early 1990s, we have not been hit by large negative supply shocks at the same time as our economy was overheating. The lesson from 2022 is that even if long-term inflation expectations are well anchored, when the economy is in excess demand, businesses raise their prices more quickly and by more when their costs increase.
(vii)  agreement has been reached that the primary goal of the common central bank, the WACB, would be maintenance of price stability. This would be accompanied through a phased movement towards inflation targeting.