(Boursier.com) — The ECB must persevere as long as inflation persists, says the president of the National Bank of Croatia. Quoted by ‘Bloomberg’, Boris Vujcic told a conference organized by the European Investment Bank: “my main concern is not where inflation will be, but how persistent it will be”. “It will take time to return to what we have seen” before on inflation, underlined the Croatian governor, noting that there is “inertia”. This is evidenced by the fact that companies are changing prices more often than before, he said.
“They used to tell us, most companies, they change prices once a year” and “now they change every quarter,” he observed. “Many companies have been able to increase their margins.”
These statements by a new ECB governor come after the announcement of an unexpected acceleration in french inflation and Spanish in February. A bad surprise for the market, which led to a sharp rise in bond rates.