Schnabel (ECB) foresees a temporary rise in inflation: “There is still a way to go”

Isabel Schnabel, member of the Council of the European Central Bank (ECB), signed this Friday in an interview with the newspaper ‘Süddeutsche Zeitung’ that the task of curbing inflation is not yet over and that, in fact, a temporary rebound is expected. of inflation before “gradually” converging with the 2% target by 2025.

“We still have a way to go,” he assured. “It’s time to see how difficult that famous last mile will finally be,” added the German, who this month gave a twist to her traditional ‘hawkish’ tone and described a possible rate hike as “quite unlikely.”

On the other hand, the member of the issuing institute has recognized that although the ECB acted “relatively late”, it did so “decisively” by “drastically” raising the price of money to contain inflation.

Looking to the future, Schnabel has predicted that although inflationary factors that affect demand persist, such as events caused or accentuated by climate change, there are also disinflationary phenomena. Such would be the case of advances in the field of artificial intelligence, which could increase productivity and, consequently, reduce price increases.