Bundesbank President and member of the European Central Bank (ECB) Governing Council Joachim Nagel expressed on Monday his hopes that inflation the Eurozone is facing currently will not leave deeper marks but be remembered as "an exceptional situation which, thanks to the right monetary policy, got back on track in good time."
Speaking to the Christian Democratic Union of Germany's (CDU) economic department of the party's section of Karlsruhe/Bruchsal, Nagel stressed that the COVID-19 pandemic and Russia's military operation in Ukraine showed the vulnerability of the global supply chain. Still, he spoke against deglobalization and called for restructuring the supply chain.
Additionally, Nagel warned about a decline in the economic output that is expected to occur on the Old Continent during the winter, as "high energy prices are weighing on production" and "supply chain problems persist." "At the Bundesbank, we are therefore very closely monitoring fundamental trends that indicate persistently high inflationary pressure," he stressed.
