The world has entered a phase of inflation not seen since the seventies and eighties, and central bank governors and economists warned during a seminar held by the European Central Bank this week in Portugal that it will take time to overcome it.
The European Central Bank, which is charged with dealing with the evolution of prices in the euro area, believes that the current stage is unprecedented.
Its president, Christine Lagarde, considered during the “Sintra” symposium in Portugal that “the current levels of inflation in the prices of food and industrial products” have reached an extent “that we have not noticed since the mid-eighties.”
She pointed out that “the increase in energy prices in recent months is much higher than the maximum limits that were recorded locally in the seventies” during the first oil shock.
With NATO Secretary General Jens Stoltenberg warning that the war in Ukraine could last “years”, falling supplies could keep energy prices high.
Imported inflation may be associated with local factors specific to each country that have a permanent impact on inflation. In this context, employees are increasingly demanding that their companies compensate for the decline in their purchasing power, which may contribute to inflation. (AFP)