Jens Weidmann, a member of the Governing Council of the European Central Bank, said that the ECB ignores some factors and therefore probably underestimates the risks associated with inflation.
According to official data, consumer inflation in the eurozone has increased significantly in recent months, and turned out to be higher than forecasts, but the ECB noted yesterday that high inflation is largely due to rising energy costs, and added that inflation is projected to fall below the target level.
However, Weidmann, who is also president of the Bundesbank, noted that the ECB may not take into account the inflationary risks associated with wage increases and the transition to a climate-neutral economy. Weidmann added that inflation risks are directed upward, and therefore politicians should be vigilant.
According to the latest forecasts of the Bundesbank, inflation in Germany will be 3.6% next year, which is twice as much as predicted six months ago. As for 2023 and 2024, inflation is expected to fall to 2.2%.