So far this pressure has not been passed on to core inflation, which has remained moderate everywhere, testifying to the credibility gained by monetary policy in the leading countries. This credibility is precious and needs to be preserved. It is the reason, especially in the euro area, why monetary conditions continue to be very relaxed: interest rates remain near the lowest levels ever.
The monetary and credit aggregates continue to expand rapidly; the prices of real assets are high; no restrictive impulses are coming from the exchange rate. Keeping inflation expectations firmly anchored at a level consistent with price stability is essential for economic growth and the creation of jobs.