Nevertheless, a number of upward risks to the outlook for price stability have emerged over recent months. Risks are mainly associated with oil price developments, possible renewed increases in indirect taxes and administrative prices, and potential second-round effects stemming from wage and price-setting behaviour. Further indications for the medium-term outlook are provided by the monetary analysis.
The downward trend in annual M3 growth in the first half of this year appears to have come to a halt in recent months. The shorter-term dynamics of M3 have strengthened and its annual growth rates are rising.