Core Inflation To Peak Before Summer, ECB’s Nagel Says

17 April 2023

By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel said on Monday that he expected core inflation in the Eurozone to peak before the summer.

In an interview with German podcast The Pioneer Briefing Economy Edition, Nagel, who heads the German Bundesbank, said, ‘I expect a decrease in core inflation rates before the summer break.’

He expressed confidence regarding the situation of the German economy, saying that he was ‘a little more positive in outlook than the IMF’ and ‘confident about the energy situation’ in Germany.

In the fight against inflation, ‘quite a bit has already been achieved, but there is still a way to go’ for the ECB, he said. ‘We have not yet tamed the beast of inflation at this point.'

‘There is still a lot to happen on the interest rate side’, he said. On the subject of the reduction of the Eurosystem’s balance sheet, he said that he ‘could imagine that the speed will be increased there.’