Inflation in the euro area: Bundesbank President Joachim Nagel does not expect any further unexpected major shock

Inflation in the euro area
Bundesbank President Joachim Nagel does not expect any further unexpected major shock

04.09.2024, 13:31

Bundesbank President Joachim Nagel is optimistic about inflation in the eurozone. “The big wave of inflation is over,” Nagel told the “Frankfurter Allgemeine Zeitung” (FAZ/Wednesday). “If there is no further unexpected major shock, such as Russia's attack on Ukraine in February 2022, then that should happen.” Inflation is trending toward 2 percent.

But we should not celebrate too soon. “We have not yet reached our goal. We must remain vigilant and keep an eye on the risks on the way back to stable prices; that is our job as a central bank.”

However, the Bundesbank President did not want to commit himself to whether he would vote for a rate cut at the next interest rate meeting of the European Central Bank (ECB). “We are still not operating on autopilot,” stressed Nagel. “But I will say this: I see inflation on the right track.”