By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Boris Vujčić said on Tuesday that the increase in inflation expectations was unsurprising and a prolonged conflict in Iran would have a greater impact on inflation.
Speaking in Zagreb, Vujčić, who heads the Croatian National Bank, said that an uptick in inflation expectations was “what we have expected – that inflation is certainly going to rise in connection to events in Iran.”
He added that the longer the conflict continues, the greater the potential damage to energy infrastructure, which would likely push energy prices higher and, in turn, fuel inflation.
On the possibility of a rate hike at the next meeting, Vujčić said that “[n]othing is certain, there will be a lot of data and news by the time of our meeting in April.”
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