BIS Review 82/1999  4  Recent price changes in the euro area have been affected by higher oil prices, which have fed through quickly to the energy component of the HICP. Nevertheless, inflation for the euro area as measured by the HICP has remained close to 1% since the fourth quarter of 1998 and hence has been consistent with price stability.
In May 1999 annual consumer price increases were reported to be 1.0% for the euro area. Moreover, recent surveys and forecasts of inflation in the euro area covering the next one to two years indicate that consumer price increases are expected to remain below 2%. Regarding economic activity in the euro area, little new information has become available in recent months.