Seen in isolation, the increase in energy prices should have only a temporary effect upon consumer price increases, but it is essential that this effect does not trigger wage claims which prove incompatible with price stability in the medium term.
Against the background of the medium-term outlook for a sustained acceleration in economic activity, decisive structural reform is warranted in order to prevent early upward pressure on prices. In fact, the Governing Council sees a strong case for enhancing structural reform in labour and product markets.