We might be seeing this in the details of the consumption figures: growth in spending on discretionary items, like travel and eating out, has slowed while growth in spending on essentials has held up (Graph 6). Graph 6  Continued weak income growth presents a particular risk to the consumption outlook in the context of high household indebtedness.
Specifically, I expect the current monetary policy stance to strengthen aggregate demand in the euro area on the back of lower real interest rates and improved confidence. Higher actual and expected inflation closer to our price stability objective also help alleviate the real debt burdens of households, firms and governments, which otherwise could have been subject to adverse debt dynamics.