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Inflation objectives, oil prices and QE.

An image of European Union map.

Oil prices.

Recent developments of oil prices have sparked various debates in relation to the European Central Bank’s inflation objectives and its efforts to achieve the 2% threshold.

My perspective as a consumer, especially an unemployed or low income one, is that if those reductions are projected upon private transportation gas tanks then we already save a few € on a monthly basis, most probably directing it to consumption, especially that of products of necessary daily use, without excluding savings as an option. Since most of the products that additional money are spent have already inelastic Demand, then consumer price inflation index (CPII) is not really expected to change, at least theoretically.

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