In particular, long run inflation expectations have been within the ECB’s definition of price stability. This underlines the credibility that the ECB has achieved since taking control of monetary policy. The volatility of inflation has also fallen.
It nearly halved during the convergence period before the inception of the euro and has continued to fall since the adoption of the euro, despite the major economic shocks hitting the euro area economy during this period. There has also been a large fall in the average volatility of long-term consensus inflation expectations.