So our inflation targeting in the euro area is nothing new or specific; and our present monetary policy is not some uncontrolled Latin flight of fancy. In practice, the euro area experienced a remarkable period of price stability up until the crisis. But as of 2013, inflation dropped well below the 2% mark. Our mandate meant we had to react in order to bring inflation back to healthier levels for our economies. And we are clearly progressing towards our objectives. Our monetary policy works; the measures we have put in place since 2014 have already been successful. First, [slide 2] we have warded off the mortal danger of deflation, and inflation is gradually recovering in the euro area. Headline inflation peaked at 2% last month, up from –0.2% in April 2016. The sharp – and partly temporary – uptick at the beginning of this year is mainly due to the rebound in energy and food prices, as underlying inflation remains below 1% (and 1.2% in 1/9  BIS central bankers' speeches  Germany). However underlying inflation is expected to rise gradually to 1.8% in 2019. We are reasonably confident that both headline and underlying inflation will converge, close to our target in 2019; and this convergence, which is not often stressed, is a key element in our forecasts, as it is crucial to the mid-term sustainability​ of the inflation path.
The challenge then is for the leadership to chart a clear strategic direction at the group level that, in short term, prepares the organization in responding to those changing environment and, in long term, creates an organization that can sustain success. The strategic direction also must fully embrace the opportunities to leverage on the group's expertise, experience, infrastructure and its extensive networks abroad in offering diversified takaful products and enhancing customer services. Emphasis should also be directed on the enhancement of human capital that would serve as an enabler for the Commerce group to achieve greater height. With the entry of Commerce Takaful Berhad into the domestic takaful industry, we also hope that all takaful players fully internalize the spirit of "takaful", that is mutual cooperation and assistance among each other, so that the industry could collaborate towards common objectives of further enhancing the resilient and expansion of the industry. Initiatives such as developing human talent and finding better and more effective mechanism of venturing abroad should also be explored at industry level. More collaborative efforts may also be directed towards strengthening the retakaful sector in which we have also first mover advantages that would subsequently reduce dependency on conventional reinsurance as a risk mitigation tool. Indeed, in realizing our vision to sustain takaful as an important sector which contributes towards the economic growth of the nation, the industry players have to jointly demonstrate unwavering commitment towards elevating the industry to new and higher levels of achievement.