However, it is also a reflection of the subsidiarity principle, a fundamental constitutional principle of the European Union. But the subsidiarity principle also has an economic rationale, namely that the delegation of policy responsibilities to a higher level is only justified if the Community is better placed to carry them out.
Based on our latest baseline forecasts, which include the potential impact of higher crude oil prices, inflation is seen to settle at 3.7 percent in 2022 and 3.3 percent in 2023, well within the government’s target range of 2 to 4 percent.