Since January 2015 this declining trend has been reversed. Both market-based and survey-based measures of longer-term inflation expectations have recovered from their lows. While broadly similar dynamics in market-based measures of longer-term inflation expectations have been observed in other countries, the decline in the euro area somewhat preceded them and was more prolonged.
I will now turn briefly to macro developments, both in terms of inflation and economic growth. Figure 7  Since last April headline inflation has turned positive but remains very low, affected by the renewed decline in oil prices. Core inflation, excluding food and energy, continues however to firm, reflecting the ongoing economic recovery which is evolving in accordance with our baseline scenario.