Institution: Eurozone inflation is not yet sufficient to prompt the European Central Bank to tighten its policies.

Felix Schmidt of Berenberg stated in a report that the rise in inflation in the Eurozone is not yet sufficient reason for the European Central Bank to raise interest rates. So far, only energy prices have been pushing up inflation, with a 2.5% inflation rate lower than the average expectation. He said that if the conflict eases by the end of April, the European Central Bank can still choose to ignore this temporary supply shock. The indirect impact of businesses passing on some of the energy costs in the form of price increases for non-energy projects is not yet clear. However, Schmidt said that the longer the war continues, the higher the inflation pressure rises, and the greater the likelihood of the European Central Bank tightening monetary policy this year.