{"id":25609,"date":"2022-03-26T11:22:00","date_gmt":"2022-03-26T15:22:00","guid":{"rendered":"http:\/\/irishexaminerusa.com\/wp\/?p=25609"},"modified":"2022-03-27T09:25:12","modified_gmt":"2022-03-27T13:25:12","slug":"top-eu-economist-calls-for-targeted-measures-to-fight-inflation","status":"publish","type":"post","link":"https:\/\/irishexaminerusa.com\/wp\/?p=25609","title":{"rendered":"Top EU Economist Calls For Targeted Measures To Fight Inflation"},"content":{"rendered":"\n
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Philip Lane, the chief economist of the European Central Bank, acknowledged that people were experiencing a major increase in the cost of living but said that he believed the rate of inflation will fall later this year (PA Archive\/PA Images)<\/em><\/figcaption><\/figure>\n\n\n\n

Targeted and temporary measures should be used to tackle rising inflation, a top European Central Bank official has warned.<\/p>\n\n\n\n

Philip Lane, the chief economist of the European Central Bank, acknowledged that people were experiencing a major increase in the cost of living but said that he believed the rate of inflation will fall later this year.<\/p>\n\n\n\n

A study by the Economic and Social Research Institute (ESRI) published on Wednesday said inflation could hit 6.7 per cent this year, a level not seen in Ireland for decades.<\/p>\n\n\n\n

The Irish economist said: \u201cWe should acknowledge these extraordinary times means there is a lot of uncertainty.<\/p>\n\n\n\n

\u201cThe inflation rate will start to come down in the second half of the year.<\/p>\n\n\n\n

\u201cWe do have the inflation rate for the euro area as a whole this year at 5.1 per cent.<\/p>\n\n\n\n

\u201cIt will be above that number.<\/p>\n\n\n\n

\u201cIt is above that number now.<\/p>\n\n\n\n

\u201cIt will above that number I think for the next few months.<\/p>\n\n\n\n

\u201cBut we do think it will start to come down.\u201d<\/p>\n\n\n\n

Inflation has dominated the political agenda in the Republic of Ireland and Europe in recent weeks, as surging prices have fueled anxiety about a growing cost-of-living crisis.<\/p>\n\n\n\n

The main opposition party Sinn F\u00e9in has urged the Government to go further to insulate households from inflation.<\/p>\n\n\n\n

Mr Lane said that the situation should stabilize and indicated he did not foresee the kind of long-term inflation witnesses in the 1970s.<\/p>\n\n\n\n

\u201cThis price increase we\u2019re seeing now is real.<\/p>\n\n\n\n

\u201cIt is a very major economic event, and it is hurting a lot of people.<\/p>\n\n\n\n

\u201cAnd I\u2019m not telling you we think it is going to reverse.<\/p>\n\n\n\n

\u201cBut what we do think is that the momentum will slow down.<\/p>\n\n\n\n

\u201cThere has been this surprise inflation.<\/p>\n\n\n\n

\u201cPeople have seen a loss of their living standards.<\/p>\n\n\n\n

\u201cAnd that has to be a factor in wage negotiations absolutely,\u201d he told RT\u00c9 radio.<\/p>\n\n\n\n

\u201cBut there is a different between that and saying we\u2019re in a high inflation era like the 1970s.\u201d<\/p>\n\n\n\n

Mr Lane said that the European Central Bank saw targeted measures a key tool in the fight against inflation.<\/p>\n\n\n\n

\u201cFor those on lower incomes, they have no savings to fall back on.<\/p>\n\n\n\n

\u201cThey will reduce their consumption, which hurts the economy.\u201d<\/p>\n\n\n\n

\u201cFrom the economic point of view, targeted and temporary are our key messages.\u201d<\/p>\n

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