All four of these factors are common to what Japan had experienced during the post-1990s period of deflation. Although these disinflationary trends have exerted some effects on short-term inflation expectations so far, medium- to long-term inflation expectations remain intact. Such expectations in the United States and the euro area seem to be stable at around 2 percent (Chart 6).
And the increased public concern about inflation is also reflected in the results of the autumn Eurobarometer survey, where more than 90% of Europeans ranked the rise in the cost of living as the number one issue of concern. And of course it is also a concern for us central bankers, whose mandate is price stability.