Those movements proved to be short-lived and the break-even inflation rate has since returned to levels that are closer to our definition of price stability, albeit marginally above 2%, possibly owing to the recent renewed upward pressures on oil price, which have increased beyond the 50 US Dollar threshold since February 2005.
The slight discrepancy between break-even inflation rates and survey expectations does not suggest at the moment, that long-term inflation expectations are not correctly anchored in line with the definition of price stability: We must take into account, in particular, the “inflation risk premium” embedded in the break-even inflation - given the uncertainties prevailing in oil markets - and the tendency of that discrepancy to diminish over the last months.