The release of U.S. consumer-price data for April triggered global shock waves as it was the strongest indication yet that prices were rising in a more sustained manner, particularly for services, a large part of the U.S. economy in which higher costs are not quickly reversed.
Over the coming months, when we have more information, including new staff projections, we will be in a better position to reassess the underlying macroeconomic conditions, the most likely paths of inflation and growth, and the distribution of risks around those paths. If warranted to achieve its objective, the Governing Council will act by using all the instruments available within its mandate.