However, the most important factor in assessing whether a deflationary spiral will materialize is not the short-term inflation expectations, which have been affected by the rapid changes in commodity prices, but developments in the medium- to long-term inflation expectations of households and firms.
The duty of public institutions is to fulfil their mandate and, by doing so, to meet the expectations of the citizens. The ECB’s Governing Council has done so and fulfilled public expectations in line with its mandate. Citizens in Europe expect overall stable prices and their purchasing power to be maintained.