Comments from the ECB chief economist
- ECB assessed that near-term supply bottlenecks and rising energy prices are the main risks to the pace of recovery and the outlook for inflation
- Analysis that Eurozone is still confronted with weak medium-term inflation dynamics remains compelling
- Supply shortages and high energy prices could slow down the recovery if they last longer
- If bottlenecks feed through to wages faster, price pressures could remain stronger
- Economy could outperform if consumers become more confident and save less than currently expected
- Inflationary pressure needs to build up on a persistent basis in order to stabilize inflation at 2% over the medium term
- We have solid reasons to expect inflation to decline in the coming year
Team Transitory is pushing back hard lately.
