Bundesbank Chief Says Grocery Prices Remain Elevated

(New York=Yonhap Infomax) Jin Woo Choi – Joachim Nagel, President of Germany’s central bank, the Bundesbank, cautioned on the 24th (local time) that “the recent surge in inflation has not yet fully dissipated.”

Speaking at a panel discussion hosted by law firm FPS in Frankfurt, Nagel emphasized, “Supermarket prices, particularly for food items, remain at a high level.”

He noted, “According to the European Central Bank (ECB), the cost of buying groceries at supermarkets has risen by 30% compared to pre-pandemic levels.” Nagel added, “Consumers are feeling this cost-of-living pressure every time they shop, and surveys show growing concerns that prices may rise further.”

He further stated, “The ECB continues to closely monitor the persistent rise in service prices amid these trends.”

Nagel also remarked, “While the ECB currently assesses policy conditions as favorable, it is important to maintain a flexible, data-driven approach at each meeting going forward.”

He added, “At the December meeting, additional data, the outlook for the next two years, and for the first time, projections for 2028 will be presented. At that point, we will be able to judge more clearly whether the current monetary policy stance is appropriate.”

jwchoi@yna.co.kr

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