This is partly for reasons that have been described as the measurement bias in consumer price indices. For the United States it was estimated that measured consumer prices tend to slightly overestimate actual inflation. A bias may also exist for the euro area HICP, although its exact magnitude is as yet unknown and needs to be explored further.
In order to maintain price stability, the Governing Council of the ECB has chosen a stability-oriented monetary policy strategy. The chosen strategy is forward-looking in nature and also ensures continuity with the former strategies of the NCBs. Moreover, it takes into account the fact that monetary policy decisions must be based on area-wide rather than national indicators.