The annual HICP inflation rate will most likely remain significantly above 2% in the coming months and moderate only gradually later in the year. The March 2008 ECB staff macroeconomic projections foresee annual HICP inflation of between 2.6% and 3.2% in 2008, and between 1.5% and 2.7% in 2009.
Compared with the December 2007 Eurosystem staff macroeconomic projections, the projected ranges for HICP inflation have shifted upwards, mainly reflecting significant additional increases in food and energy prices. It is important to recall that these staff projections are based on a number of assumptions which are of a purely technical nature and unrelated to policy intentions.