Moreover, this scenario of elevated inflation rates remained subject to previously identified upside risks posed by possible further increases in oil prices, a stronger pass-through of past oil price increases, additional rises in administered prices and indirect taxes, and potential second-round effects in wage and price-setting.
Furthermore, the monetary analysis continued to point towards increasing upside risks to price stability over the medium to longer term. Monetary growth gained momentum in the third quarter of 2005 and credit expansion to the private sector remained very robust.