Over the medium term, the upward pressures from energy prices are expected to disappear gradually, while HICP rates of inflation will increasingly depend on domestic forces. On balance, the Governing Council judges the risks to price stability still to be on the upside.
The Governing Council will continue to counteract any risks to price stability in the medium term by responding in a timely manner. At the same time, it does stress the importance of all economic actors 1  BIS Review 115/2000  responding in an appropriate manner to the current oil price-led increase in consumer price inflation.