- ECB assessed that near-term supply bottlenecks and rising energy prices are main risks to the pace of recovery and outlook for inflation
- Analysis that Eurozone is still confronted with weak medium-term inflation dynamics remains compelling
- Supply shortages and high energy prices could slow down the recovery if they last longer
- If persistent bottlenecks feed through into higher than anticipated wage rises or economy returns more quickly to full capacity, price pressures could become stronger
- Extensive accommodation is needed to build up inflationary pressure
- Economy could outperform if consumers become more confident and save less than currently expected
- We have solid reasons to expect inflation to decline in the coming year