At the same time, the outlook for growth in the area of exports and domestic demand is now predicted to improve. Overall, the most recent economic data confirms that the underlying momentum of economic growth in the euro area is favourable.
However, as regards economic activity and the medium-term risks to price stability, the surge in oil prices is increasing cause for concern (show chart). In the light of heightened geopolitical uncertainties, the price per barrel of the leading North Sea oil, Brent crude, has been ratcheted upwards by around 25% since the beginning of the year, peaking at close to USD 117.