The ECB changed the forecast and predicted even higher prices than expected

Inflation is not as transient as we thought, said the Vice President of the European Central Bank

The jump in inflation in the eurozone is not as transient as previously thought, and price growth this year risks exceeding forecasts, said Vice President of the European Central Bank Luis de Gindos, quoted by BNR.

De Gindos said at an event hosted by the Swiss bank UBS that “inflation may not be as transient and temporary as predicted just a few months ago.” 12 months “, added the Vice President of the ECB.

However, he insisted that “risks are still considered balanced in the long run” and that inflation “will certainly fall” and said he still expected inflation to be below the ECB’s 2 per cent target in 2023 and 2024

Inflation in the euro area reached 5% last month, the highest record in the single currency bloc, but the ECB expects it to return below the 2% target in both 2023 and 2024, even without tightening monetary and interest rate policy, as inflationary pressures will ease.

According to him, inflation will depend on the development of energy prices and noted that the price of oil is recovering.

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