Mário Centeno sees inflation slowing down in 2022

Mário Centeno is aware of the rise in prices but continues to believe that inflation is likely to be transitory. Speaking at an event in Paris, the governor of the Bank of Portugal said that prices should slow down next year.

In statements reproduced by Jornal de Negócios, citing Bloomberg, the former finance minister said that “inflation is expected to slow down in 2022,” after skyrocketing this year.

Prices have been rising sharply, largely because of rising energy prices. Several countries, including Spain and Germany, have inflation rates above 4%.

The European Central Bank forecasts inflation of 2.2% in the Eurozone at the end of this year. A figure that should drop to 1.7% in 2022 and 1.5% in 2023, according to the Frankfurt-based institution’s economic forecasts.

Centeno had stated recently that the ECB’s best response to uncertainty around prices would be to maintain “close monitoring, a steady hand and be ready to act flexibly.”