at the beginning of the summer of this year; since then it has been declining and should according to all expectations drop below 2 p.c. in the coming months.
The reduction of inflationary pressures has allowed the European Central Bank to reduce its interest rates since the spring by 150 basis points in four moves (coming from 4.75 p.c., a level lower than in North America). These moves had moreover become desirable given the weakening economic activity in the euro area.