Since the ECB became responsible for monetary policy in the euro area in 1999, HICP inflation has averaged 2%. This is very near to the “below and close to 2%” at which the ECB aims over the medium term. Let me remind you that during the 1980s and 1990s, the average inflation rate was 4%.
Inflation expectations have also been remarkably stable in recent years. Average long-term consensus inflation expectations have fallen from 2.8% in the 1990s (1990 to 1998) to 1.8% over the past six years. This is fully in line with our definition of price stability.