ECB Monthly Bulletin - January 2008

Inflation reached 3.1% in December 2007, confirming the strong upward pressure on prices in the short term, stemming mainly from strong increases in oil and food prices in recent months.

The annual HICP inflation rate is expected to remain significantly above 2% in the coming months and is likely to moderate only gradually in the course of 2008, meaning the period of temporarily high inflation rates would be somewhat more protracted than previously expected.

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