BIS Review 109/2009  1  This inflation outlook is consistent with the September 2009 ECB staff projections, which have been revised slightly upwards compared with the June projections, mainly owing to higher energy prices. The Governing Council considers the risks to this outlook to be broadly balanced.
On the downside, the downward pressure on prices could be stronger than expected, due to the sharp contraction in economic activity over the past year and the modest scale of the recovery which is foreseen.