Development, industrialization and social and distributive conflict were the issues that attracted the best minds and the vision of political leaders. What was asked of monetary policy was to produce growth, capital formation, the narrowing of the gap between Italy and its European partners, and balance-of-payments equilibrium. Price stability was a secondary concern.
Corporate service prices are still falling slowly. As for the condition surrounding price development, the balance between supply and demand in the domestic market is projected to be on a gradual improving trend, while an economic recovery is expected to continue moderately. In these circumstances, upward pressure on prices is likely to arise temporarily from the increase in crude oil prices.