CROYDON (Dow Jones) – The price pressures in the euro area is expected to slow in the words of Ewald Nowotny, a member of the Council of the European Central Bank (ECB) until the second half of 2011. (Photo: ECB)
"I expect the peak in the first half," Nowotny said on Tuesday. "Then we will see lower inflation, so I expect no increase in inflation expectations," added the Governor of the Oesterreichische Nationalbank (OeNB) is added.
The temporary tightening of inflation will have no impact on his assessment after the ECB interest rate policy. When asked whether he expected prices would also be neutral for the course of the central bank, Nowotny said "yes." He said something similar as ECB President Jean-Claude Trichet.
The ECB president had said following the recent Council meeting that there were signs of a short-term upward pressure on overall inflation, was mainly due to energy prices. This change but not change the assessment of the Governing Council that the evolution of the monetary policy relevant horizon will remain consistent with price stability, Trichet stressed.
The ECB left its key interest rate since May 2009 unchanged at 1.00%. Annual inflation in the euro area had been in December at 2.2% for the first time in over two years on the area of price stability norm of the ECB of "below but close to 2%" inflation.