Eurozone inflation will decline in the coming months, but at a slower pace than expected, Bundesbank President Joachim Nagel said on Sunday.
Eurozone inflation fell to 2.4% in November, compared to 2.9% in October.
“We have not yet won the battle against inflation,” Nagel, who recently visited Cyprus, told local newspaper Kathimerini on Sunday.
Nagel described inflation as a stubborn and greedy creature and said the next phase of the fight against it will be more difficult than before.
“If you add to this a scenario where worsening geopolitical tensions could mean higher inflation, then it is clear that it would be too early to declare victory over high inflation rates,” said Nagel, who is also a member of the committee rate of the European Central Bank. – setting advice.
“I cannot say whether interest rates have already peaked. In the Governing Council of the European Central Bank we decide interest rates meeting after meeting, following our data-driven approach,” he added.
Nagel noted that the inflation outlook is influenced, among other things, by the fact that measures aimed at limiting high energy prices are gradually disappearing in many European countries. She also highlighted the expected continuation of strong wage growth.
“Overall, I expect inflation to continue to decline, but at a slower pace and with potential bumps along the way,” Nagel said.
2023-12-03 13:04:00
head-of-the-german-central-bank-it-is-still-too-early-to-declare-victory-over-inflation-economy