Thanks to the credibility gained over the years, the Eurosystem was able to keep inflation expectations steady during the crisis and to act with the speed and flexibility demanded by  BIS central bankers’ speeches  1  extraordinary circumstances.
If we break down the Consumer Price Index and look separately at inflation in the tradable components and inflation in the nontradable components, we can see a significant gap: Inflation of tradable goods has been negative for the past few months. In the past 12 months, prices of tradable goods declined by 0.86 percent.