In many euro area countries we are seeing a gradual increase in the less dynamic and less active part of the population, which in general leads to a fall in consumption and investment with the resultant negative effect on the economy. That is another reason why reforms of the health and pension systems and the labour market are crucial.
In some countries, specific policies have been adopted to correct this demographic trend. 2  BIS Review 20/2005  [Question] Of course, low growth in productivity also has an impact on inflation. [Answer] Of course. Low growth in productivity means higher unit labour costs.