Eurozone inflation remains elevated and the risks are tilted to the upside, but higher energy costs have yet to translate into broader wage and price pressures, Bundesbank President Joachim Nagel said on Monday, Reuters reported.
Inflation in the 21-member euro zone is currently running at 3.8%, almost twice the European Central Bank’s 2% target. The sharp rise has raised concerns that surging energy prices could eventually trigger second-round effects across wages and other prices, making inflation more persistent and potentially requiring tighter monetary policy.
