According to the latest ECB staff projections the average annual inflation rate is foreseen between 3.4% and 3.6% in 2008 and between 2.3% and 2.9% in 2009. It is the Governing Council’s view that the risks to this outlook are on the upside.
As regards the future, John Snow, the US Secretary of the Treasury, has already spoken publicly about the need to reduce the budget deficit and maintain a strong dollar. This is of great importance and encouraging. However, let us not forget that we too have work to do on this side of the Atlantic.