A cross-check of the outcome of the economic analysis with that of the monetary analysis confirms the assessment of low inflationary pressure over the medium term. All in all, we expect price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households.
Price stability is an important signal to the economy and provides a stable planning horizon to predict future prices and perhaps returns. Most coordination failures occur due to the inability to forecast future prices or calculate, for example, return on investment.