In November manufacturing output registered its second consecutive decline, reflecting the contraction in activity in Germany and Italy and stagnation in France. Indicators of the climate of confidence have not yet signaled a clear reversal of trend in the expectations of households and firms in the main countries, except in Germany, where the last few months have seen an improvement.
We do not target or try to control prices of individual goods and services. With 2 per cent inflation, there will always be some prices rising more quickly and others more slowly. Central to a market-based economy is the role of relative price signals in allocating resources.