BIS Review 14/2010  4  Figure 2: Measures of longer-term inflation expectations in the euro area percent per annum, 5-day averages of daily data  Note: Data in percent; BEIR denotes the Break-Even Inflation Rate; SPF denotes the ECB Survey of Professional Forecasters. Source: Consensus Economics, Reuters, ECB Calculations. BIS Review 14/2010  5
Indicators of underlying core inflation have been rising rapidly this year, and inflation expectations have been shifting upwards. That is why the ECB’s first interest rate hike in over a decade will take place soon. And that was indeed the message we conveyed after the ECB monetary policy meeting on June 9th.