Temporary factors have fuelled euro area inflation

The monetary policy objective in the euro area is to keep inflation as measured according to the Harmonised Index of Consumer Prices below, but close to, 2% over the medium term. This cannot be deemed to have taken place until a sustained convergence of inflation to the objective is achieved and sustained, despite exit from the current very substantial degree of monetary policy accommodation. As the objective is defined for the euro area, on average, inflation in an individual Member State may deviate from the objective. The recent pick-up in inflation has been due mainly to temporary factors.