Concerning recent price developments, HICP inflation for the euro area fell to 1.0% in September, due to a strong impact from food prices, but I would not want to read too much into this latest decline as some price components can be relatively volatile over short periods.
Conversely, it has put upward pressure on the value of other currencies where the need for monetary stimulus has been less, including the Australian dollar. While movements in the value of our own currency remain heavily influenced by changes in commodity prices, the upward pressure on the Australian dollar from developments abroad has complicated the transition of the economy following the mining investment boom.