Sir, – “Pandemic inflation” is a neat slogan but the European Central Bank is peddling an illusion that the current inflation is transient.
Salaries are rising to meet the demands of increased prices, and negative interest rates on savings are eroding purchasing power. These inflationary pressures can be countered with a rise in interest rates but the bank has set its face against this.
Perhaps the ECB might come clean and admit that its current policy has more to do with favourable exchange rates, with respect to the dollar and sterling, than with combating inflation. – Yours, etc,
MICHAEL GANNON,
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Churchtown,
Dublin 14.