In large part it stems from the fall in oil prices, but it also depends, to a significant extent, on internal dynamics: the margins of unused plant capacity and available labour are wider than in other advanced economies.
As I have recalled on several occasions in recent years, like excessively high inflation, an overly subdued price dynamic is also harmful for economic and financial stability, especially when public and private debt are high and growth is weak. Resolute action is being taken to dispel the risk of a prolonged detachment of inflation expectations from the level consistent with the central bank’s objective.