All this means that wages and prices are rising only marginally and will do so only very moderately in the euro area in the coming years, too. According to Eurostat’s estimate, the rate of inflation in June was just 0.5%.
And, although the projections show a slow rise in the rate of inflation to 1.5% in the fourth quarter of 2016, this would still fall short of the target. At its meeting in June the ECB Governing Council was united in its reaction to the risks associated with such a subdued price outlook and approved a package of measures.