Current bond market yields continue to show market expectations of a period of sustained economic growth in the euro area. At the same time, the accumulated depreciation of the exchange rate of the euro remains a cause for concern and has to be taken into account in the assessment of the risks to price stability.
As regards consumer price developments, inflation in May 2000, as measured by the Harmonised Index of Consumer Prices (HICP), remained at 1.9%. A lower year-on-year change in services prices offset relatively strong rises in other prices, in particular energy and unprocessed food prices.