“The recent surge in consumer prices should be celebrated”, Claudio Borio, head of the economic and monetary department at the Bank for International Settlements, told CNBC.

“For those countries … that have been trying very, very hard to get inflation up unsuccessfully, having inflation persistently higher, roughly at target, that would actually be very good news and one should rejoice about that,” Borio told CNBC’s Julianna Tatelbaum in an interview.

Inflation is Back Near Targets And That Should Be Celebrated

Inflation had been a thing that bad been debated among the government and the economist in the UK. The readings had been seen to have beaten both the expectations of the US and the UK. This had led to further debates and disagreement among the policymakers and rattling financial markets on several occasions.

Some European Officials are stating that the pandemic-induced stimulus program should be scaled back in the face of rising prices, while others argue that inflation will be temporary and so monetary policy should remain loose.

“The real problem is if inflation proves to be higher, uncomfortably higher for uncomfortably long,” Borio said.

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“Inflation has picked up over recent months, largely on account of base effects, transitory factors, and an increase in energy prices. It is expected to rise further in the second half of the year, before declining as temporary factors fade out,” said European Central Bank President Christine Lagarde at a press conference earlier this month.

Inflation can surely be a tricky thing. Borio agreed that “so far, most [of] what is going on is essentially temporary.”

“We have one-off increases in prices which are basically bouncing back from where they were before; we’re having technical effects, so-called base effects; we’re seeing, indeed, there are speed limits to [the] world economy,” he added.