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ECB director Schnabel: high energy prices are a risk
Photo: Michael Kappeler / dpa
According to Director Isabel Schnabel, rising energy prices could force the European Central Bank to take action against inflation.
The turn to green energy sources carries the risk of higher inflation in the medium term, Schnabel said in a speech.
If energy becomes more expensive, this could cause the ECB to abandon its previous monetary policy.
"Monetary policy cannot afford to ignore increases in energy prices if these pose a risk to medium-term price stability," said Schnabel.
Inflation in the euro area rose to another record high in December.
Goods and services cost an average of 5.0 percent more than a year earlier, as the Eurostat statistics office announced on Friday for its first estimate.
This is the highest value since the statistics began in 1997.
The ECB recently raised its inflation forecast for the new year to 3.2 percent, almost doubling it.
In the ranks of the euro guardians, however, warnings of prolonged high inflation have recently been loud.
The ECB's loose monetary policy has recently come under increasing criticism.
mic / Reuters
