8 This is a useful measure of underlying inflation because it excludes one-off or highly volatile price movements that do not reflect fundamental sources of underlying inflation pressures. •  Survey measures of inflation expectations have fallen and are now consistent with inflation settling at 2 percent in the medium term.
In addition, there are indications that bank lending conditions tightened further, affecting loan supply in several euro area countries in late 2011. It is not yet possible to draw firm conclusions from these developments, particularly given that the impact of the first three-year LTRO on bank funding is still unfolding and may not have been fully reflected in the most recent bank lending survey.