Moreover, the views can be expressed rather cheaply inasmuch as one does not have to finance a speculative inventory. This, in conjunction with what I have discussed a little earlier brings us to the inference that an unrestricted currency market can lead to volatility in exchange rate as well as currency inflows and outflows. 16. The question that then arises is this.
On the basis of current information, annual HICP inflation is expected to remain at low levels over the coming months, before increasing gradually during 2015 and 2016. The September 2014 ECB staff macroeconomic projections for the euro area foresee annual HICP inflation at 0.6% in 2014, 1.1% in 2015 and 1.4% in 2016.