Accordingly, the Governing Council anticipates continued economic growth in 2005 and 2006. This is consistent with the ECB staff projections of March 2005 and with forecasts made by international and private sector organisations. This outlook is subject to a number of uncertainties. Notably, the persistently high level of oil prices and the possibility of further rises pose downside risks to economic growth.
BIS Review 29/2005  1  With regard to consumer prices, the outlook for price developments over the medium term has remained broadly in line with the ECB’s definition of price stability. At the same time, annual HICP inflation has exhibited a relatively high degree of short-term volatility, mainly caused by changes in oil prices and developments in indirect taxes and administered prices.