This expectation is supported by new data releases, several forward-looking indicators including confidence surveys, recently published forecasts from official and private sources, as well as developments in financial markets. Even though inflation may not fall over the coming months as quickly and by as much as had been previously anticipated, the medium-term outlook for price stability remains favourable.
The past appreciation of the euro should continue to dampen import prices and it is presumed that wage increases will be moderate. Finally, the strong monetary expansion, which we have been observing for quite a while, is not considered a factor adversely affecting this outlook, for the time being.