Remarks by ECB policymaker, Martins Kazaks
- But does not see 2% target sustainably reached in the medium-term
- No reason to expect permanently hot inflation
Essentially, he's trying to say that there will be inflation without inflation. The fact that the ECB may need to revise higher its outlook/projections moving forwards says a lot.
Again, the nature of inflation may yet be 'transitory' but the challenge for central banks is figuring out how long that may be. With supply bottlenecks set to continue through to next year and the pandemic still stifling a synchronised global recovery, 'transitory' could mean another year of high cost/price pressures everywhere.
