Some people refer to these challenges as the "three Ds". First, deglobalisation, driven by geopolitical tensions and a desire to reduce economic dependencies. Related processes have also become known as friendshoring or nearshoring. Second, the decarbonisation of the economy, incentivised in particular through carbon pricing, could exert persistent upward pressure – and not just on energy prices.
Third, demographics – more precisely, the assumption that dwindling labour supply will continue to exert upward pressure on wages. All these factors could turn out to be inflationary over the coming years. That is another reason why the Eurosystem must remain vigilant in this regard and ensure that inflation expectations remain well anchored around 2%. 4.