Source: ECB calculations based on Eurostat data. Note: Data for 92 HICP subcomponents. Chart 7 Recent developments in extra-EA manuf.
Looking further ahead, we expect the economic expansion to proceed at a moderate but steady pace. Domestic demand should be supported by the pass-through of our monetary policy measures to the real economy. Favourable financing conditions and improvements in corporate profitability continue to promote a recovery in investment.