ECB President Christine Lagarde said in a conference, “We are firmly of the view, and I’m confident, that inflation will decline in 2022.” She described the inflation profile as a “hump”, and while it’s now at a high level of the hump for Eurozone, ” a hump eventually declines.”
Lagarde also said that energy prices will have declined significantly by the end of 2022. But supply bottlenecks will take until mid-2022 or end 2022 to end.
Separately, Governing Council member Klaas Knot said the central bank could decide to raise interest rates by 2023 if inflation continues to exceed expectations next year.
