Although, at 1%, this rate is currently also below the price stability target, it is rising and is far removed from the dangerous territory of deflation, that is to say the territory in which we would have to fear a downward spiral of sinking prices, falling wages and an economic downswing. 3.
Paths leading to stronger growth  Ladies and gentlemen, the purpose of the Eurosystem’s highly accommodative monetary policy is to stimulate economic activity in order to bringing inflation into alignment with the definition of price stability. Private consumption in the euro area has been picking up perceptibly, and not just because financing conditions are favourable – low oil prices and inflation are another factor.