FRANKFURT (Reuters) – The euro zone’s inflation surge is not entirely temporary and risks are skewed towards higher-than-projected readings, new Bundesbank President Joachim Nagel said on Tuesday, challenging the European Central Bank’s narrative on price pressures.

These remarks were made during Nagel’s swearing-in ceremony. This is Nagel’s first time as the head of Germany’s central bank. The German central bank has traditionally been hawkish on inflation risks.

It is true that inflation can be caused by special effects that automatically expire. Nagel explained that it is possible to have high inflation rates without relying on special effects. “I fear that inflation may remain higher than I expected,” Nagel said.

The inflation rate in the 19-country currency group hit a record high of 5% in October. However, the ECB downplayed this figure by arguing that rising energy prices were the main reason and that even with tightening policy, price growth would fall back below its 2% target.

This narrative has been challenged by the Bundesbank, which warns that inflation profile is not as benign. Nagel seems to be supporting predecessor Jens Widmann who resigned with the fifth year of his second term after unsuccessfully challenging the ECB’s super-easy policies for a decade.

Nagel (55), a veteran of central banking, said that inflation is a problem for the most vulnerable and promised to continue his support of price stability.

The people of Germany expect the Bundesbank, as a voice for stability culture, to do so. “I can guarantee you, it will stay so,” he stated.

Nagel will be the head of the Bundesbank for the next eight years. He said that the inflation outlook is extraordinarily uncertain, and that the Bundesbank may have to adjust monetary policy if the actual results exceed expectations.

Weidmann voted against a Dec. decision by the ECB that extended stimulus. The 25 members of the Governing Council are dominated by policy doves. Weidmann was not one of the five policymakers to oppose that decision. However, people close to discussions said at most five others could switch sides, if inflation continues beating expectations as it did over the past year.

On Tuesday, Philip Lane, chief economist at the ECB said that inflation would fall rapidly this year. He also predicted that it will be below its 2% target for 2024 and next year. The ECB had been forecasting inflation at 2.6% for almost a decade before last year. The ECB predicts that inflation will be 3.2% in 2019.

Lane ignored warnings regarding upside risks and argued that wage growth remains anaemic. It is a prerequisite for durable inflation.