Globally, rising demand is encountering a level of supply that is still being limited by materials shortages and delivery bottlenecks. And, in particular, energy and food prices have risen sharply the world over. The rise in inflation has been unsettling many people. We, the Eurosystem, are taking these concerns very seriously.
Although our monetary policy is oriented to the medium term and would look through a short-term pick-up in inflation, the inflation risks, too, have risen distinctly and are clearly pointing upwards. The Governing Council of the European Central Bank therefore decided this month to scale back net asset purchases under the APP, which was launched in 2014, more quickly than previously planned.