At this level,  there is a risk of self-fulfilling expectations of sustained high inflation as manifested in inflation-indexed contract price adjustments, agitation for higher transport fares, negotiations for wage and salary increases, a rise in house rentals and general price increases for goods and services.
To mitigate against this, let me state that inflation is forecast to start moderating from the second quarter of 2022 and, subject to current projections remaining valid, revert to within the Bank’s 3 – 6 percent medium-term objective range from the third quarter of 2022. To be absolutely clear, this projected trajectory for inflation is premised on the following.