On Tuesday, European Central Bank policymaker Peter Kazimir said that Eurozone inflation could remain high for longer than projected, adding to a growing chorus of concerns about rising pricing pressures.
Despite strong inflation, the ECB extended stimulus last week, reasoning that price pressures will ease and inflation will fall below its target of 2% by the fourth quarter of 2022.
Some policymakers encouraged the central bank to acknowledge inflation risks on the upside, and other central bank governors, including those of Germany, Portugal, and Lithuania, have already issued public warnings about the inflation risk.
"What is true for Slovakia is also true for the Eurozone as a whole: there is a risk, and this risk is not minor, that inflation will remain high for longer" Kazimir, Slovakia's central bank chief, said.
He also stated that he is one of the policymakers who believes that there is a risk of price increase being higher than expected.
"The Eurozone may struggle with higher inflation for a longer period of time," Kazimir added.
Inflation in the Eurozone rose to 4.9% last month, but the ECB expects it to fall back below target as one-off price pressures subside.
Although inflation is mostly considered to be temporary, several policymakers have warned that it could persist long enough to impact wage setting, causing longer-term price pressures.