{"id":139350,"date":"2021-09-21T11:26:12","date_gmt":"2021-09-21T11:26:12","guid":{"rendered":"https:\/\/precoinnews.com\/?p=139350"},"modified":"2021-09-21T11:26:12","modified_gmt":"2021-09-21T11:26:12","slug":"ecb-policymakers-acknowledge-growing-inflation-risk","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/","title":{"rendered":"ECB policymakers acknowledge growing inflation risk"},"content":{"rendered":"<p>FRANKFURT (Reuters) &#8211; European Central Bank policymakers still see the recent inflation surge as temporary but a growing number appear to be acknowledging the risk that price growth may exceed their relatively benign projections.<\/p><figcaption>FILE PHOTO: The headquarters of the European Central Bank (ECB) are pictured in Frankfurt, Germany, July 8, 2020. REUTERS\/Ralph Orlowski\/\/File Photo<\/figcaption><p>Inflation hit 3% last month, well above the ECB\u2019s 2% target and could even climb to 3.5% by November, but the bank then sees a rapid drop that will drag price growth back below 2% for years to come.<\/p>\n<p>A surge in commodity prices, supply bottlenecks and growing signs of labour shortages are however challenging this \u201chump-shaped\u201d profile for consumer price growth.<\/p>\n<p>ECB Vice President Luis de Guindos stuck with the ECB\u2019s main scenario but highlighted upside risks and warned that the bank needs to be \u201cvery vigilant\u201d of the risk that temporary price rises could become permanent.<\/p>\n<p>\u201cSome countries in Europe have indexation of pensions and the salaries of public officials to inflation,\u201d de Guindos told an online conference with the Financial Times.<\/p>\n<p>\u201cThat should be avoided because if you have a clear indexation of the economy to the evolution of a temporary shock &#8230; then you can convert this temporary upward evolution of inflation to something that is much more permanent. And that is something that we should avoid.\u201d<\/p>\n<p>He also warned that commodity prices and production bottlenecks risk creating \u201csecond round\u201d effects in inflation.<\/p>\n<p>Greek central bank chief Yannis Stournaras acknowledged that actual price growth could exceed the ECB\u2019s projection but argued that this should not force the ECB to tighten policy.<\/p>\n<p>\u201cWe\u2019ve accepted there\u2019s an upside risk regarding inflation,\u201d Stournaras told Politico in an interview. \u201cIn the past, however, we have over-predicted inflation [on the higher side], expecting that it moves towards 2% in the medium term.\u201d<\/p>\n<p>The ECB has undershot its target for most of the past decade and policymakers now argue that after such a long period of misses, the bank must not move early and should even tolerate a modest overshoot to ensure it does not tighten policy prematurely.<\/p>\n<p>Source: <a href=\"https:\/\/www.reuters.com\/article\/ecb-policy-inflation\/ecb-policymakers-acknowledge-growing-inflation-risk-idUSKBN2GH0ND\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FRANKFURT (Reuters) &#8211; European Central Bank policymakers<\/p>\n","protected":false},"author":3,"featured_media":139349,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23051],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ECB policymakers acknowledge growing inflation risk - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ECB policymakers acknowledge growing inflation risk - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"FRANKFURT (Reuters) &#8211; European Central Bank policymakers\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-21T11:26:12+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/09\/ECB-policymakers-acknowledge-growing-inflation-risk.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/\",\"url\":\"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/\",\"name\":\"ECB policymakers acknowledge growing inflation risk - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2021-09-21T11:26:12+00:00\",\"dateModified\":\"2021-09-21T11:26:12+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/precoinnews.com\/category\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"ECB policymakers acknowledge growing inflation risk\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"ECB policymakers acknowledge growing inflation risk - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/business\/ecb-policymakers-acknowledge-growing-inflation-risk\/","og_locale":"en_US","og_type":"article","og_title":"ECB policymakers acknowledge growing inflation risk - Pre Coin News","og_description":"FRANKFURT (Reuters) &#8211; 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