Eurozone inflation may remain higher than expected of Agerpres.
At its monetary policy meeting on 16 December, the European Central Bank decided to further reduce incentives but at the same time promised consistent support for 2022, confirming its relaxed view on inflation and suggesting that any exit after several years of ultra-relaxed monetary policy will be slow.
The ECB will cease to acquire assets under the Pandemic Emergency Purchase Program (PEPP) in March 2022. At the same time, however, the ECB will accelerate its bond purchases under an older program called the asset purchase program (APP), so that the Frankfurt institution will continue to be active in the market.
Officials are urging the ECB to admit to rising inflation risks, and central bank governors in Germany, Portugal and Lithuania have already publicly warned of inflationary risks.
“What is true for Slovakia is true for the euro area as a whole: there is a risk, and it is not a small one, that inflation will stay high for a longer period of time,” said Kazimir, who is also the governor of the Central Bank. Slovakia.
He added that officials see the risk of higher-than-expected inflation as a risk.
“The eurozone could face a higher level of inflation for a longer period of time,” the ECB official warned.
According to Eurostat, the annual inflation rate in the euro area rose to 4.9% in November from 4.1% in October. Compared to a year ago, the inflation rate in the euro area was minus 0.3%.
According to the economic forecast for autumn, published by the European Commission (EC) on Thursday, inflation in the euro area will reach a maximum level of 2.4% in 2021, before falling to 2.2% in 2022 and to 1.4% in 2023, as energy prices are expected to gradually stabilize.
This sharp rise in inflation is mainly due to rising energy prices, but it also appears to be linked to a broad set of post-pandemic economic adjustments, suggesting that the current high levels are largely transitory, according to the European Commission.