Hence the decline in the overall HICP rate was also reflected in the HICP rate excluding the two more volatile components – energy and seasonal food. These developments have to be seen partly in the context of a one-off base effect resulting from country-specific increases in indirect taxes which occurred last year.
Against this background, the expectation remains that over the next few months the rate of price increases will tend to edge upwards, mainly reflecting the increase in energy prices. In conclusion, the outlook for the maintenance of price stability in the euro area remains favourable and in line with the Eurosystem’s definition of price stability.