Bundesbank president and ECB Governing Council member Nagel said energy price
rebounds raise inflation risks and could pass through to other goods and wages,
pushing inflation higher. He noted the ECB’s September baseline forecasts
already assumed further tightening and said the inflation outlook has since
worsened. A rate increase in December is likely unless the inflation outlook
improves materially; any decision will be based on the latest economic
projections. Euro‑area September headline inflation is expected near 4% (about
double the ECB’s 2% target); core inflation around 2.5%. Nagel added that the
ECB paused last week but clear second‑round inflation effects have not yet
emerged.
