By contrast, the recent oil price increases have had a limited effect on inflation and also on output and unemployment. This has been the case because of the high credibility of the ECB in safeguarding price stability. Because of this high credibility, inflation expectations are now well-anchored.
Since the public has remained convinced that inflation will remain low in the long run, the energy price increases have not generated significant second-round effects on wages and prices. As a result, monetary policy has been able to maintain a more accommodative stance. This stance has been decisive in counteracting the negative effects of the oil price increases on the real economy.