Madis Muller says inflation will accelerate in coming months
Updated
Updated · Crypto Briefing · May 4
Madis Muller says inflation will accelerate in coming months
11 articles · Updated · Crypto Briefing · May 4
He linked the outlook to Middle East conflict-driven energy prices as the ECB kept its deposit rate at 2% and raised its 2026 inflation forecast to 2.6% from 1.9%.
Eurozone inflation was 1.9% in February, while consumer inflation expectations jumped to 4.0% in March, reinforcing concern that price pressures could persist and rates stay unchanged or rise.
Market pricing showed no expectation of an April 2026 ECB rate cut, and officials have signalled further increases remain possible if energy shocks from the Iran-Israel-US conflict continue.
With eurozone growth near zero, can the ECB afford to raise rates further to combat energy-driven inflation?
If the Mideast conflict de-escalates, will the ECB quickly reverse its hawkish stance on interest rates?
How long can Europe's economy withstand the Strait of Hormuz blockage before a recession becomes inevitable?