European Central Bank: Panetta, short-term inflation has not yet peaked

“The Eurozone is facing an inflation boom caused by a combination of purely temporary factors. The dominant factor currently is the rise in energy prices globally. In October, energy contributed 2 percentage points to inflation, the largest contribution in the history of the Eurozone.” This was stated by Fabio Panetta, member of the Executive Board of the European Central Bank (ECB), who participated in the Science Po conference in Paris. “This dynamic is driving inflation in the short term, which has not yet reached its peak,” Panetta added.