E.  Conclusions  In the euro area, short-term price expectations of households and firms dropped after the financial crises and are currently stagnant; the medium- to long-term inflation expectations of economists and market-based indicators are somewhat below, but roughly in line with, the price stability target.
This may suggest that the sluggish households’ and firms’ price expectations are temporary and that those expectations will eventually begin to rise as economic conditions improve. In Japan, the medium- to long-term inflation expectations of economists and market-based indicators remain around 1 percent. This is partly because the price rising trend – except for the oil price – seems to have been settling.