The general picture is one of continued economic expansion combined with broadly low inflation. Several forecasts made during spring 1998 have even suggested slightly lower rates of inflation for 1998-99 compared with expectations in autumn 1997.
As far as price developments are concerned, inflation as measured by the harmonised consumer price index (HICP) is estimated to have risen slightly in April, to 1.4%, but has not increased further in May. Output growth has remained strong in recent quarters, with annual growth rates close to or even exceeding 3%.