However, in the last quarter of the year, annual inflation rates rose sharply, reaching a peak of 3.1%, driven largely by substantial increases in oil and food prices. Notwithstanding these price shocks, wage growth remained moderate and medium to longer-term inflation expectations firmly anchored at levels consistent with price stability.
*  *  *  Accompanying charts can be found at the end of the speech or on the European Central Bank’s website. I am grateful for the assistance of F. Hammermann, S. Holton and J. Hutchinson.