Bank of Greece governor Yannis Stournaras sees inflation in the Eurozone peaking this year, predicting a further decline in 2023 before retreating to near the ECB’s 2% target next year. As he characteristically stated: “I am optimistic that the monster of inflation will have been defeated by the end of 2024″
Speaking at a conference at the Alpbach European Forum, the Greek central banker said that “I believe that the successive jumps in inflation to ever higher levels will soon begin to reverse. A steady de-escalation of inflation is imminent,” to add that “My belief is based, among other things, on the expected moderation in the rate of growth in energy and commodity prices, as well as the gradual easing of problems in supply chains.”
He also added that according to the latest Eurosystem experts’ projections (published in June), inflation is expected to peak before the end of the year, decline gradually in 2023 and converge to the target in 2024. Core inflation is expected to follow a similar course, while he pointed out that “The risks to the development of the euro zone and the global economy are constantly increasing. This may imply lower price pressures in the medium term.”
That’s why he added that under these conditions, monetary policy is faced with the dilemma of reducing inflation to the target level on the one hand and a “soft landing” on the other amid growing fears of an economic recession.
Beyond that, he noted that “We remain determined to destroy the Hydra of hyperinflation, without overlooking the risks to the transmission of our single monetary policy, financial stability and economic activity,” adding that “That is why we have developed an important new tool, TRI, which will enable us not only to tackle inflation aggressively but also to prevent any threats of fragmentation’ and concluded ‘I am optimistic that the monster of inflation will have been defeated by the end of 2024’.
Latest News
41st Athens Marathon- Traffic Regulations in Athens from Thursday to Sunday
Traffic regulations will be implemented gradually, starting from Thursday, as part of the 41st Athens Marathon.
Greek Households Most Pessimistic in Europe: IOBE Report
Over six in ten (65%) of households said that their financial situation worsened over the past year
JP Morgan Remains ‘Bullish’ on Greek Banks
JP Morgan reiterated its analysis of DTCs, prompted by Piraeus Bank’s plan to accelerate their amortization
Source of Wealth Declarations for Greek Public Officials Made Easier
Source of wealth declarations are designed to improve transparency and prevent corruption among Greece's public officials. Yet 98% of Greeks still believe corruption is widespread in the country, according to Eurobarometer.
Greece’s Labor Market Slack Among Highest in EU
Greece ranks 4th in EU for labor market slack, mostly due to high unemployment levels, and has widest gender gap in the EU.
Livestock Crisis Threatens Greek Feta
Feta in particular, is Greece’s primary dairy export, with 65% of production going abroad.
Moldova’s Sandu Wins Second Term amid Meddling Claims
According to the Central Election Commission, with 98% of votes counted, Maia Sandu led with 54.35% to Alexandr Stoianoglo’s 45.65%
Attica Wins ‘Best Greek Hospitality Region’ at 2024 Awards
The Greek Hospitality Awards, now in their tenth year, are one of the premier tourism industry events at the European level
Greece Takes Command of EU’s Operation ASPIDES in Red Sea
The defense minister also visited the Greek frigate Spetsai, which is participating in Operation ASPIDES, while in the port of Djibouti
Brain Gain: Returning Greeks Drive Innovation and Growth in IT and Key Sectors
The profile of the returnees to Greece reveals that 67.6% have families, and 52% have children