CNBC interviewed analysts called on the European Central Bank (ECB) to accept high prices and stop applying to inflation Definition “temporary”.
The words of economists have become a reaction to the recent speech of the head of the Federal Reserve System (Fed) of the United States Jerome Powell, who said that the regulator it’s time to stop calling increased inflation to temporary phenomenon.
According to the main economist of the British division of the Japanese Investbank Nomura George Balley, the same is worth making the head of the ECB Christine Lagard. “The transitional period of [High prices, which officials like to speak, including Lagard] assumes that we have nothing to worry about. But in reality we do not know whether we should worry about it,” the Buckley noted.
According to him, it is currently unclear what influence on the European economy will have the current level of prices in the eurozone. He also called on the leadership of the ECB to active actions for the neutralization of high prices, including a sharp increase in the key bet.
The head of the Macroeconomic Studies of Ing Research Karsten Bezheki adheres to the same opinion, which marked that the ECB should more actively and more fully notify the market participants about the current state of the economy and possible risks.
At the end of November, inflation in the eurozone reached 4.9 percent in annual terms at a target rate of two percent. Former Forecasts of the ECB provide for the rise in prices for the year by 2.2 percent, by 1.7 percent in 2022 and 1.5 percent in 2023. In the near future, the regulator is going to revise the estimates.