Because most of the recent price increases have stemmed from what appear to be one-time shocks, central bankers continue to believe that the inflation rate will drop back to their target of 2percentt by some time next year.
The IMF forecasts that the region's inflation rate will drop into single figures next year for the first time since 1960.GOOD, BAD AND UGLY Nowhere has monetary policy been as tight as in Argentina, which operates a currency board under which the money supply must be backed 100% by foreign reserves.
The Russian government has allowed inflation to continue, making it unlikely that inflation in Russia will drop to its target of 6% in the short-term.
If nothing is done, he says, the average Italian's pension package, now typically amounting to 54% of final salary and indexed for inflation, by 2050 will drop to less than 30%.The best bet, most experts reckon, is to get more people into private pension schemes to top up their state pensions, and to raise the retirement age still further.
The bank's central inflation projection assumes that retail gas and electricity prices will drop by around 20% over the next year, but the decline could be steeper.
The only place interest rates can go is up–and higher interest rates will likely squeeze any inflation out of the system rather quickly as loan demand will drop as soon as rates increase.
The Campaign for Science and Engineering (CaSE), a lobbying group, estimates that spending on science will drop 12% by the 2014-15 fiscal year, before taking inflation into account.
Starting in 2005, the 15% bracket will gradually increase for married couples from $46,700 to $55,900 (not adjusted for inflation), so that many families currently in the 27% bracket will drop back a level.
