Subsequently, however, HICP inflation rates should fall again, and provided that oil prices do not increase significantly and wage moderation prevails, reach levels in line with our definition of price stability in the course of 2003. Looking further ahead, both the strengthening of the euro exchange rate this year and the subdued economic activity continue to contribute towards reducing inflationary pressures.
The government sustained the reform momentum in consonance with its pandemic response. For instance, it pursued the passage of the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act, which cut corporate income tax to make it competitive with our ASEAN neighbors and we rationalized the fiscal incentives system.