Gabriel Felbermayr, head of the economic research institute (Wifo), expects that the inflation rate will peak in the coming months. Then it will probably fall, but the annual average will probably be more than three percent, according to the economic researcher in the ORF-“ZiB2”.
Felbermayr does not expect the European Central Bank (ECB) to quickly counteract this with an interest rate hike. First of all, the bond purchase program must be phased out, and only in a second step will “for better or for worse, there will also have to be interest rate increases”. However, this cannot happen as quickly as in the USA because some countries in the euro zone, such as Italy, Greece and Portugal, could otherwise get into financial difficulties.