KOF Monetary Policy Communicator, January 2023
The KOF MPC figure for 2 February 2023 is -0.04. At today’s meeting, the ECB’s Governing Council communicated that price pressures remain strong, as high energy costs are spreading throughout the economy.
The Governing Council decided to raise the three key ECB interest rates by 50 basis points. The Council also expects to raise the key ECB interest rates by another 50 basis points at the March policy meeting.
According to Eurostat’s flash estimate, Euro area annual HICP inflation was 8.5% in January down from 9.2% in December. This decrease was mainly caused by a drop in energy prices. Expected energy pric-es over the coming years are significantly lower than previously expected. Still, price pressures are fueled by high energy costs that are spilling over into the broader economy. Supply constraints are grad-ually easing, but their lagged effect and pent-up demand continue to drive up inflation. Supported by robust labour markets and reflecting inflation compensation, wages are rising faster but in line with ECB expectations.
Contact
KOF Konjunkturforschungsstelle
Leonhardstrasse 21
8092
Zürich
Switzerland