As the background to this, President Draghi pointed out that the weak headline inflation dominantly driven by the fall in oil prices could adversely affect medium-term price developments through the second-round effects on wage and price-setting.
As a matter of fact, in Europe, in a situation where the momentum of economic recovery is weak, the inflation rates have declined to a negative figure for the first time in about 5 years due to the effects of the fall in crude oil prices, and some indicators have started to suggest a decline in the medium- to long-term inflation expectations.