segments with low competition, particularly payment services, will be promoted in the third financial sector master plan. on inclusiveness, merely upgrading the technology would not be sufficient. following our earlier analogy of driving a car on a journey, we must take into account the needs of all the passengers. in this case, our next milestone is to achieve a more inclusive banking system that serves all groups of customers, particularly household and smes, many of whom have been left on the side of the road while others are driving by on the journey. for individuals and households, they should be able to more easily access financial services and at a more reasonable cost. i am not merely talking about loans, but also basic services such as deposits and fund transfers. the latest financial access survey indicates that lack of access is partly because of the distance to nearest service providers is too far and the cost is too high. this is where technology and collaboration such as the use of agents can help. moreover, as our population is ageing fast, we should all start to save for retirement now, and i strongly encourage banks to develop and promote more products to satisfy this growing customer segment. there is also a growing class of older people who have too little knowledge or weaker capabilities to manage their own financial wealth after retirement. this is another area that banks can help. for smes, which contribute significantly to employment in thailand, we need to work together to promote their access to funding. this calls for a joint effort between the government, banking sector, and smes to improve available information and its flow. in this regard, as bankers, such as guests here today, are close to the smes, see their account movements, and provide financial advice you will play a key role here. i believe there are a lot of rooms for banks to provide funding for smes, both directly and indirectly, perhaps through more innovative products that can benefit from banks ’ own information and more collaboration between banks. equity financing, including venture capital, for smes will also be promoted in our plan. in my opinion, innovation and entrepreneurship of sme, which need supports from banks, is one of the most important drivers for thailand to overcome the middle - income trap. as for large corporates, thai conglomerates now operate in multiple countries, and as their businesses grow, they would require more cross - border services to meet their needs. a bank intending to serve such conglomerates should have an integrated system across countries and advisory services for alternative funding such as

don't move together very much. this is in contrast to high inflation regimes where changes in prices are broad based. statistical measures show this, with a large decline in the contribution of the common component of sectoral price changes as economies move from high inflation regimes to a low one. for example, for the united states the contribution of the common component fell from around 60 % 1 / 4 bis - central bankers'speeches during the high - inflation years – up to the mid - 1990s – to around 25 % in the subsequent low - inflation period. other countries have had a similar experience. 2. inflation tends to be self - stabilizing. with inflation expectations well - anchored, there is limited pass - through of shocks across sectors so that price changes in one sector do not spillover to other sectors. importantly, wages and prices are only loosely linked with each other. as a result, the persistence of inflation is low as sectoral shocks do not propagate more broadly so that inflation quickly returns to previous levels after price shocks. for the same reasons, exchange rate effects on inflation also tend to be muted. in addition to these two structural features of low inflation regimes, an important development in the underlying economic context is the greater role of supply shocks. these have generated large and persistent relative price changes, which have become much more prominent in driving overall inflation. most recently, we have seen supply - side factors driving the post - pandemic inflation surge. large scale disruptions in global supply chains as well as shortages in key commodities, notably energy and food, have resulted in sharp global price spikes. the prominent role of supply - side developments for inflation dynamics not new. since the early 2000s, globalization – in particular, the integration of china into world trade and the opening up of emes – along with rapid technological developments led to a long secular decline in the price of tradeable goods relative to that of non - tradables, mainly services. these kept a lid on overall inflation, which on average hovered below central banks'objectives. we will continue to face persistent supply - side price pressures going forward. higher trade barriers, trade fragmentation, reconfigurations of global supply chains, demographic changes and the climate transition will drive large secular relative price changes. these forces may also increase inflation volatility to the extent that they make supply less elastic or less responsive so that demand shocks will translate into larger changes in prices. the challenge in this environment, inflation targeting faces three main challenges