Address to the 6th DIW Lecture on Money and Finance (26 February 2020). 23  Donnery, Sharon. High priests and politics: building public understanding through changing central bank  communications. Address to the European Central Bank Communications Conference (15 November 2017). 24See the European Central Bank website for further detail. 25Makhlouf, Gabriel. Resilience through transitions: facing the tumult.
We’ve already seen a momentum shift in goods prices. For inflation to get back to 2%, supply needs to catch up with demand and services price inflation needs to cool. Wage growth will need to moderate alongside inflation expectations, and pricing behaviour normalize. If those things don’t happen, inflation won’t come back to our 2% target, and additional monetary tightening will be required.