Euro’s Drop Risks Inflation Via Imports, German Minister Says
- Florian Toncar spoke in interview with Bloomberg Television
- ECB shouldn’t get too much advice from governments, he adds
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The euro’s weakness risks stoking consumer prices further via imports, German Deputy Finance Minister Florian Toncar said, while cautioning that the European Central Bank doesn’t need much advice on what to do.
“We must also look at the value of the euro, compared to US dollars for instance -- otherwise we import inflation,” Toncar, state secretary at the country’s Finance Ministry, told Bloomberg Television’s Guy Johnson and Alix Steel on Wednesday. “If you compare the development of the euro to the US dollar you see a certain decline, and that in the end also makes imports more expensive -- and imports inflation.”