“ECB is very timid in fighting inflation”

“The forecast for this year is good, although we are surrounded by crises,” said Klaus Neusser, head of the Institute for Advanced Studies (IHS), yesterday at the presentation of the summer forecast together with the Institute for Economic Research (Wifo). Both institutes expect growth to weaken significantly next year (see chart). The main problem is the high inflation, which – due to the sharp rise in energy prices – has become entrenched in many sectors.