5 As noted previously, these price declines have led headline inflation across the globe to behave quite similarly over this time period. Even so, most observers expect this source of convergence in inflationary outcomes to eventually fade and thereafter not affect monetary policy paths over the medium term.
The new Member States have made significant progress in terms of disinflation in the past years, by bringing their average inflation rates close to that of the euro area. Yet, inflation developments in the new Member States continue to be rather volatile and diverse across countries.