This drop is not only the result of economic activity. The labor market and welfare reforms of the past few years have also reduced structural unemployment. Since the introduction of the euro in 1999, some 15 million new jobs have been created in the euro area. This is not to depict an unduly positive picture.
The inflation rate for October came to 2.6% after being below the 2% mark for a year. The outlook for price stability over the medium term is subject to upside risks as increased oil, commodity and food prices as well as the favorable labor market situation are likely to make higher wage settlements possible.