In the retail sector and household service industry, prices are expected to show  2  BIS Review 35/2006  only a moderate rise in the period ahead. In the building and construction industry, there are now more signals of rising prices. Consumer price inflation has edged up, but is still very low even 2½ years after the cyclical change. The year-on-year rise in the consumer price index (CPI) was 2.4 per cent in March. Price impulses from consumer goods that are imported to Norway have been negative in almost all the years since the mid-1990s, reflecting the liberalisation of international trade and the shift in imports towards lowcost countries. The rise in prices for domestically produced goods and services slowed somewhat towards the end of 2005 and into 2006. The 12-month rise in prices for these products is estimated at 1.6 per cent in March adjusted for the effects of lower maximum day-care rates. However, several factors point towards rising inflation. Capacity utilisation in the Norwegian economy is increasing, and tighter labour market conditions may result in higher wage growth in the coming years. The rise in oil prices is resulting in higher input costs for producers. As a rule, monetary policy shall not take account of the direct effects on consumer prices resulting from changes in the interest rate level, taxes, excise duties and extraordinary, temporary disturbances. However, there is no certain method for distinguishing extraordinary, temporary disturbances from more long-lasting price changes.
15.02.2023  Latest monetary policy developments in the euro area Consejo Empresarial Alianza por Iberoamérica (CEAPI) Madrid Pablo Hernández de Cos Go verno r  Ladies and gentlemen, let me begin by thanking Consejo Empresarial Alianza por Iberoamérica for inviting me to address you all. Today I will focus on recent and future monetary policy developments in the euro area. In the first part of my address, I will explain the rationale behind the monetary policy decisions that we adopted in our European Central Bank (ECB) Governing Council meeting earlier this month. In the second part, I will lay out a number of factors that will require close monitoring going forward. Our February monetary policy decisions In order to explain the rationale behind our February decisions, it is useful to first go back to our decisions and communication at our December monetary policy meeting. As you may recall, in that meeting we raised our key interest rates by 50 bp. More importantly for the purpose of my address today, we also announced that interest rates would still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive to ensure a timely return of inflation to the 2% medium-term target. The ECB Governing Council’s assessment of the inflation outlook is based on a wealth of information, in which the ECB/Eurosystem staff’s macroeconomic projections – prepared on a quarterly basis – play a prominent role.