Economics
Omicron Could Send Inflation Either Way, ECB’s Muller Says
- Longer supply problems could lead to more price pressure
- Estonian central bank chief speaks in interview in Tallinn
This article is for subscribers only.
The omicron variant of the coronavirus could send euro-area inflation in either direction -- depending on how governments, companies and consumers respond, according to European Central Bank Governing Council member Madis Muller.
“If there are further lockdowns and sharp restrictions on the economy, demand could decline and more likely could result in downward pressure on inflation,” Muller said Tuesday in an interview in Tallinn. “On the other hand, if supply-chain problems, for instance, last longer due to omicron, there could be upward pressure on inflation.”