As regards consumer price developments, inflation in May 2000, as measured by the Harmonised Index of Consumer Prices (HICP), remained at 1.9%. A lower year-on-year change in services prices offset relatively strong rises in other prices, in particular energy and unprocessed food prices.
Over the coming months the rate of increase in consumer prices could continue to be affected by lagged effects of the increase in import prices. For the outlook for price stability in the medium term, it is essential that these short-term movements of inflation do not become protracted and translate into second round effects.