In particular, we will have to closely monitor whether, after the pass-through of the higher energy costs observed in 2022, it will now work in reverse, with firms’ mark-ups reflecting the most recent declines, a key step to achieving a durable reduction of underlying inflation.
Finally, although targeted and temporary fiscal measures to alleviate the burden on more severely hit households and firms should obviously not be ruled out, their financing should not put the progressive reduction of public debt at risk, and avoid further increasing its burden on the future generations.