ECB Deputy: Euro Inflation ‘Not as Temporary As We Expected’
European Central Bank (ECB) Vice-President Luis de Guindos has admitted that inflation currently facing the euro will be longer lasting than what the bank initially expected.
The admission comes as the Eurozone faces the highest level of inflation since the currency was introduced, hitting nearly 5% across the bloc in November.
While senior members within the ECB had been previously playing down the level and longevity of the Euro’s inflation, according to a report by Der Spiegel, Vice-President de Guindos finally struck a different tone on Monday.
“Our inflation is more persistent and not as temporary as we expected,” the vice-president said during an interview with Spanish radio station COPE. “It has to do with delay factors in the logistics sector, bottlenecks in the supply of intermediate goods.”
De Guindos also warned of potential economic fallout after the pandemic for nations in precarious fiscal positions. – READ MORE
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