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Inflation reached its peak in November

by Mike Robinson

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© Reuters. FILE PHOTO – Isabel Schnabel (member of the German advisory panel of economist experts) attends the Frankfurt European Banking Congress, 29th Frankfurt European Banking Congress, at the Old Opera house, Frankfurt, Germany, November 22, 2019. REUTERS/Ralph Orlowski/File photo

BERLIN, (Reuters) – The European Central Bank Board member Isabel Schnabel indicated that she believes inflation reached its peak in November. Therefore, it would not be prudent to increase interest rates. Price increases are expected to slow down gradually over the next year.

According to ZDF TV, inflation will trend towards 2% in the next year as energy prices rise and supply bottlenecks ease. Current high levels reflect supply bottlenecks, as well as the base effect of lower prices at the height the pandemic.

She said that “most forecasts” assume inflation to fall below 2.2%. This means there is no evidence of price increases getting out of hand.

“If inflation were to stabilize at 2% we’d definitely respond. “But, for the time, there are no signs of that,” she said.

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