Beyond the immediate future, the gradual pass-through of the appreciation of the euro, together with the expected moderate improvement in economic growth, should reduce inflationary pressures. The  BIS Review 6/2003  1  most likely outcome remains that inflation will fall and eventually stabilise at a level below 2% in the course of 2003.
A major condition for price stability to also prevail in the medium term will be moderate wage developments. Wage moderation would also help improve the prospects for economic growth and further employment creation. It is therefore of particular importance that the upward trend in wage growth finally comes to a halt.