ECB governing council member Kazimir said euro-area inflation could come in
above the bank's recently upgraded forecasts and singled out natural gas and
electricity as growing risks. The ECB last Thursday delivered a second rate hike
this year and raised several inflation projections, underpinning market bets for
up to three more hikes next year. Kazimir, viewed as a hawk, cautioned that
policymakers' openness to further action should not be read as hesitation and
said the bank will act decisively when evidence warrants. He said his focus has
shifted from oil and fuels to gas and power, and that food inflation—which
affects perceptions and expectations—is expected to pick up.
