This rise in cross-border trade may be partly related to the introduction of the single currency and the increased price and cost transparency. Over the same period, exports and imports of goods with trading partners outside the euro area rose from about 24% of GDP to almost 30%.
If they were to remain at their recent high levels, it is to be expected that inflation rates would continue to be higher than previously anticipated and stay above 2% for longer than just a few months ahead. When assessing price trends over the medium term, however, the outlook remains favourable.