This is documented by last week’s assessment that inflationary risks persist and continue to lie on the upside. Upside risks for future price stability arise, amongst others, from additional increases in administered prices and indirect taxes, and from a situation with ample liquidity.
But in particular they stem from possible further increases in oil prices, a stronger pass-through of higher oil prices into consumer prices due to stronger indirect effects or possible second-round effects. I will come back to these transmission channels later on. As I have said before, the concern about oil prices will be familiar to Dr Whitaker.