Taken together, all these elements should provide a much better base than in the past for a recovery in the course of next year once the initial shock has been absorbed. However, notwithstanding all these positive aspects, we will continue to monitor downside risks to the current situation.
Against this background, we are confident that inflation in the euro area will continue to decline to a level consistent with price stability. Receding external price pressures, combined with the expected continuation of wage moderation, underpin this expectation.