The ECB estimates that inflation peaked in November, which means it would be premature to raise interest rates as price increases are likely to slow gradually over the next year, the board member said. of the ECB, Isabel Schnabel.
Inflation will return to 2% next year, he told ZDF television, as supply problems and rising energy prices subside.
The current highs reflect both supply problems and comparisons from lower prices last year, at the height of the pandemic.
“Most forecasts actually estimate that inflation will fall below 2%, so there is no real indication that price increases are spiraling out of control,” Schnabel said.
“If we thought that inflation would be permanently above 2%, we would certainly react. However, at the moment, we do not see any signs of that,” he added.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
