This may also imply a transitory period in which inflation is moderately above target. Let me turn to the assessment of the economic outlook and our pandemic measures. The recovery in the euro area economy is on track. More and more people are getting vaccinated, and lockdown restrictions have been eased in most euro area countries.
But the pandemic continues to cast a shadow, especially as the delta variant constitutes a growing source of uncertainty. Inflation has picked up, although this increase is expected to be mostly temporary. The outlook for inflation over the medium term remains subdued. We need to preserve favourable financing conditions for all sectors of the economy over the pandemic period.