MADRID, Sept 15 (Reuters) – The rise in inflation in the euro area is largely temporary and the European Central Bank has tools to deal with any persistent upward pressure on prices, the head of the bank said on Wednesday. monetary policy of the ECB, Pablo Hernández de Cos.
“The ECB is closely monitoring the behavior of inflation, but we do not see any second-round impact,” De Cos said at a financial event held remotely in Spain.
Second-round effects are those in which a rise in inflation in turn causes a rise in salaries, which in turn cause a rise in inflation, fueling a vicious cycle of higher prices.
Eurozone inflation has risen more than expected recently, but the ECB has remained in its belief that the rebound is temporary and caused by rising oil and commodity prices, and shortages. components, such as microchips, related to the pandemic.
(Report by Jesús Aguado and Emma Pinedo; edition by Inti Landauro; edited in Spanish by Tomás Cobos)