ECB’s Knot Says Inequality Heightens Need to Fight Inflation

Consumer prices are a main driver of inequity, which is why fighting inflation is so important, according to European Central Bank Governing Council member Klaas Knot.

“This is a continuous issue for debate, but I keep on saying that inflation is one of the biggest income unequalizers of society, let’s not fool ourselves,” he told a Davos panel chaired by Bloomberg’s Stephanie Flanders. “High inflation is very detrimental, particularly for people with low incomes, who have little choices in their consumption pattern, simply have to take the prices as they come.”