At this juncture, it is therefore particularly important to remain vigilant with regard to the further evolution of the key factors determining the outlook for prices. On the basis of current information, it is still possible that annual HICP inflation rates will fall below 2% in the coming months. However, the outcome is highly dependent on oil price developments.
The rather protracted upward trend in services prices is also a factor to be taken into account. For next year, projections for price developments depend largely on the assumption of continued wage moderation. The outcome of the ongoing wage negotiations in some regions of the euro area could become a matter of concern.