We are thus currently experiencing a protracted period of high annual rates of inflation, which is likely to be more persistent than previously anticipated. Consistent with this view, the Eurosystem staff projections foresee average annual HICP inflation at between 3.2% and 3.6% in 2008 and between 1.8% and 3.0% in 2009.
Compared with the March 2008 ECB staff projections, the ranges projected for inflation in 2008 and 2009 are markedly higher, reflecting mainly higher oil and food prices and increasingly inflationary pressures in the services sector. In this context, it is important to recall the conditional nature of the Eurosystem staff projections.