ECB's Holzmann says clinging to hope that inflation spike is temporary

At least someone is being honest

As much as central bankers have kept up the narrative that the surge in inflation pressures is temporary or 'transitory', they don't really have the right tools to deal with the root of the problem. As such, the best they can do is to hope that to be the case.

I made a couple of points on this issue last week below, in case you missed it:

• Eurozone data today lays bare the one big issue faced by the world
• Stagflation risks are overblown but dangerous times are still coming