via their effects on production costs), 70 per cent of the overall error made in forecasting inflation in 2022.10 This share rises to 80 per cent when the effects of food prices, the other volatile component of the consumer price index, are also taken into account.
Critics also forget that, in June 2021, the euro area headline inflation was still below 2 per cent and the core inflation below 1 per cent: therefore, at the time, the ECB Governing Council was still concentrating on how to increase inflation durably, in the wake of its successful battle against deflation.