In his speech at the online conference, Jens Weidmann, Member of the European Central Bank Governing Council and President of the German Central Bank, commented, “I see that upside risks dominate the price developments in the Euro Zone at the moment.”
“For example, if oil prices stay at their current levels or rise even higher, the inflation rate may be higher than today,” Weidmann said.
Evaluating the inflation in Germany, Weidmann stated that the rise in inflation in the country was due to temporary factors.
Saying that there is no sign of ‘second round effects’, Weidmann warned that upside risks are also dominant.
While Weidmann said that the Pandemic Urgent Asset Purchase Program (PEPP) should end when the emergency is over, he said, “There are two conditions for this. The economic recovery is solid and the restrictions associated with the pandemic are lifted.”