Still, while the economy continues to be in a fragile state, continuous attention should be paid to the risk of a negative impact on the economy from developments in foreign and domestic financial markets. With regard to prices, import prices are increasing reflecting the depreciation of the yen since around the end of last year and the rise in international commodity prices.
In the most recent survey, conducted in the 1st quarter of 2005 the mean point estimate for HICP inflation indicated by the respondents to the ECB survey remained close to and below 2%, in line with the ECB’s quantitative definition of price stability and with the Survey results for the previous quarter.