As such, a certain level of heterogeneity in inflation rates can be interpreted as a reflection that necessary price adjustment processes are taking place. Moreover, the Eurosystem has already taken account of inflation heterogeneity explicitly by spelling out its stability policy objective in terms of a medium-term euro-area inflation rate of “just under 2 percent”.
Given the current dispersion of inflation rates, in my opinion, the safety margin implied in this definition is sufficient to protect all member countries against deflation. However, the Eurosystem has to continue to analyse national developments in inflation rates and check if they are compatible with the prevailing price norm.