•  On the other hand, genuine “deflationary dynamics”, which are characterised by their persistent and self-sustaining character, their broad based effects across most price components, and their entrenchment in expectations.
However, it should be stressed that risks appear very limited given the continued anchoring of longer-term inflation expectations at levels consistent with price stability, wage and price stickiness and the still sustained pace of monetary dynamics. By contrast, upside tail-risks to inflation receive less attention – but may be more relevant and a stronger source of concern in the medium to longer term.