Inflation: the word on all central bankers’ lips

Inflation is on the lips of every central banker. What can they do to curb surging inflation and will it be enough?
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Inflation remains one of the hottest economic topics of the moment, affecting households and companies and giving central bankers a very hard time. For a long while, central bankers had labelled accelerating inflation as ‘transitory’, attributing the rise to reopening effects after Covid lockdowns. With inflation surging for the second year in a row, inflation could still be labelled as
‘transitory’ in the sense that it is mainly driven by global factors like the reopening of economies, supply chain frictions, and the war in Ukraine and its impact on energy and commodity prices. However, it is definitely not ‘transitory’ in the sense of being temporary. In the Western world, in particular, high inflation has become an enormous concern. Headline inflation rates as seen in the 1970s will most likely be transitory, higher prices won’t.
Record high inflation persists
The global economy has clearly seen better days. As attention shifts to the role of central banks, ING's Carsten Brzeski raises the question: how far can they actually go?
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Inflation Federal Reserve ECB
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