These are factors that act to raise the price level but, conditional on the appropriate conduct of monetary policy, should not be a source of persistent inflation. Chart 16 Headline and core inflation in the euro area  (annual percentage changes) Sources: Eurostat, ECB calculations and March 2022 ECB staff macroeconomic projections. Notes: Historical data are at monthly frequency.
1/3  BIS central bankers' speeches  Meanwhile, bank lending has started to recover amid ample liquidity, as well as the improvement in consumer outlook and business sentiment. Non-performing loans of the banking system have risen to 4.43 percent but remain within manageable levels.