- Inflation will likely stay above 2% in coming months
- Faster inflation mostly due to higher energy costs
- Price developments mostly first round effects
- Must avoid second round effects (wages rising as a result of rising prices)
Stark is a former Bundesbank official, so the fact that he is fairly sanguine about inflation suggests the ECB is not about to stomp on the monetary brakes.His tone is very much like Trichet’s, earlier today.
