KOF Monetary Policy Communicator, September 2022
The KOF MPC figure for 8 September 2022 is 0.53. At today’s meeting, the ECB’s Governing Council communicated that inflation is far too high and is likely to stay above the ECB’s target for an extended period.
The Governing Council decided to raise the key ECB interest rates by 0.75 percentage points. The council also expects that more rate hikes in the next several meetings will be necessary to dampen demand.
According to Eurostat, Euro area annual HICP inflation was 9.1% in August. Inflation is driven up by energy and food prices, demand pressures in some sectors owing to the reopening of the economy, and supply bottlenecks. Inflation pressures have broadened and intensified. Some recent upward revisions to longer-term inflation expectations warrant continued monitoring by the Governing Council. This development is reflected in a strong upward revision of the ECB’s inflation projections: Eurosystem staff projections foresee inflation at 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024 (June projections: 6.8% in 2022, 3.5% in 2023 and 2.1% in 2024).
Contact
KOF Konjunkturforschungsstelle
Leonhardstrasse 21
8092
Zürich
Switzerland