pandemic on economic life is now proving less damaging. second, high energy costs are reducing the purchasing power of households and the earnings of businesses, which constrains consumption and investment. and third, shortages of equipment, materials and labour in some sectors continue to hamper the production of manufactured goods, delay construction and hold back the recovery in parts of the services sector. there are signs that these bottlenecks may be starting to ease, but they will still persist for some time. looking beyond the near term, growth should rebound strongly over the course of 2022, driven by robust domestic demand. as the labour market is improving further, with more people having jobs and fewer in job retention schemes, households should enjoy higher income and spend more. the global recovery and the ongoing fiscal and monetary policy support also contribute to this positive outlook. targeted and productivity - enhancing fiscal measures and structural reforms, attuned to the conditions in different euro area countries, remain key to complement our monetary policy effectively. 1 / 3 bis central bankers'speeches inflation inflation increased to 5. 1 per cent in january, from 5. 0 per cent in december 2021. it is likely to remain high in the near term. energy prices continue to be the main reason for the elevated rate of inflation. their direct impact accounted for over half of headline inflation in january and energy costs are also pushing up prices across many sectors. food prices have also increased, owing to seasonal factors, elevated transportation costs and the higher price of fertilisers. in addition, price rises have become more widespread, with the prices of a large number of goods and services having increased markedly. most measures of underlying inflation have risen over recent months, although the role of temporary pandemic factors means that the persistence of these increases remains uncertain. market - based indicators suggest a moderation in energy price dynamics in the course of 2022 and price pressures stemming from global supply bottlenecks should also subside. labour market conditions are improving further, although wage growth remains muted overall. over time, the return of the economy to full capacity should support faster growth in wages. market - based measures of longer - term inflation expectations have remained broadly stable at rates just below two per cent since our last monetary policy meeting. the latest survey - based measures stand at around two per cent. these factors will also contribute further to underlying inflation and will help headline inflation to settle durably at our two per cent target. risk assessment we continue to see the risks to

”, swiss national bank working papers, no 7 / 2017. [ 14 ] see draghi, m. ( 2018 ), “ europe and the euro 20 years on ”, speech by mario draghi, president of the ecb, at laurea honoris causa in economics by university of sant ’ anna, pisa, 15 december 2018. [ 15 ] see blind, k., mangelsdorf, a., niebel, c. and ramel, f. ( 2018 ), “ standards in the global value chains of the european single market ”, review of international political economy, 25 : 1, 28 – 48. ; nadvi, k. ( 2008 ), “ global standards, global governance and the organization of global value chains, ” journal of economic geography, 8 ( 3 ) : 323 – 343. [ 16 ] see devereux, m. et al. ( 2008 ), “ do countries compete over corporate tax rates? ”, journal of public economics, vol. 92 ( 5 - 6 ), pp. 1210 – 1235. [ 17 ] oecd ( 2018 ), oecd economic outlook, volume 2018 issue 1, oecd publishing, paris. [ 18 ] see european commission, “ new eu rules to eliminate the main loopholes used in corporate tax avoidance come into force on 1 january ”, press release, brussels, 30 december 2018. [ 19 ] joined cases t - 131 / 16, belgium v commission and t - 264 / 16, magnetrol international v commission, judgment of the court of 14 february 2019. [ 20 ] regulation ( eu ) 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing directive 95 / 46 / ec ( general data protection regulation ). [ 21 ] commission implementing regulation ( eu ) 2016 / 2286 of 15 december 2016 laying down detailed rules on the application of fair use policy and on the methodology for assessing the sustainability of the abolition of retail roaming surcharges and on the application to be submitted by a roaming provider for the purposes of that assessment. 9 / 10 bis central bankers'speeches [ 22 ] directive ( eu ) 2015 / 2366 of the european parliament and of the council of 25 november 2015 on payment services in the internal market, amending directives 2002 / 65 / ec, 2009 /