Based on this understanding, I see some latitude with regard to the achievement of the 2 percent price stability target. On that point, what the price stability target aims to achieve after all is not simply a rise in prices.
In line with this view, the latest Eurosystem staff projections foresee average annual inflation between 3.2% and 3.6% in 2008 and between 1.8% and 3.0% in 2009. Compared with previous staff projections, this represents a significant upward revision, reflecting higher oil and food prices as well as increasing inflationary pressures in the services sector.