Underlying inflation that strips out volatile items like food and energy will likely slow this summer, according to European Central Bank Governing Council member Joachim Nagel.
(Bloomberg) — Underlying inflation that strips out volatile items like food and energy will likely slow this summer, according to European Central Bank Governing Council member Joachim Nagel.
“Core inflation sadly has accelerated in recent months,” Nagel told the Pioneer Briefing podcast in an episode aired Monday. “But I’m also counting on a retreat before the summer break,” he said. “Still, inflation is too high and we have to do more on interest rates.”
“The task isn’t done yet, we still have a way to go, we haven’t yet slayed the inflation beast,” he said. “My colleagues in the ECB council and I will keep at it.”
Nagel, who heads Germany’s Bundesbank, also said:
- He can imagine pace of quantitative tightening to speed up
- Not too worried about European banks
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