Eurozone: There will be additional inflation in the aftermath of the corona crisis – Natixis

Economists at Natixis see four reasons to believe that there will be additional inflation in eurozone countries in the aftermath of the coronavirus crisis.

Key quotes

“It is likely that inflation in the eurozone may rise, temporarily in the short-term as a result of production problems, and in 2021-2022 as a result of onshoring, wage increases and helicopter money.”

“The question is then whether eurozone inflation will remain around 2%, which would allow the ECB to take little action, or whether it could rise well above 2%, which would force the ECB to act.”