Astonishingly different inflation across goods categories

tweet at 11:14am: ECB'S LANE: WE ANTICIPATE A DECREASE IN INFLATION NEXT YEAR.Transcript of IMF podcast: Philip Lane on the Nature of Europe’s Double-Digit Inflation Bruce Edwards: So what's the difference between inflation in the US and inflation in Europe? Philip Lane: This is clearly mostly a supply shock in Europe, from this energy shock. The increase in energy prices in all the sectors that use energy as an input has led to this really extraordinary inflation rate of 10.7, double-digit inflation. Bruce Edwards: In today's episode, European Central Bank Chief Economist, Philip Lane, explains Europe's own special inflation conundrum, and what it means for governments and people there trying to stay afloat. Philip Lane: The most vulnerable groups do have to be supported, but the way to reconcile supporting those groups with maintaining, if you like, prudent public finances, is as far as possible, to make sure that the fiscal measures are targeted and contained. So targeted and temporary. Bruce Edwards: Philip Lane was invited to participate in the IM tweet at 11:16am: ECB'S LANE: WE'VE STATED THAT WE INTEND TO DO MORE ON RATES. tweet at 11:17am: ECB'S LANE: THE DOMINANT SOURCE OF INFLATION REMAINS THE ENERGY SHOCK.

Good morning, and thank you. It is a pleasure to be here. I would like to use my time today to answer the question posed by the title of this session: What can the Fed learn from ...

Ladies and gentlemen It is with great pleasure that my colleague Thomas Moser and I welcome you to this year’s Swiss National Bank (SNB) Money Market Event in Geneva. We are very glad that so many of you have joined us this evening, be it on site or remotely. Since we last met in this setting a year ago, fighting inflation has become the most important task for central banks worldwide. Many countries have experienced a surge in inflation, the scale and pace of which very few anticipated. A large part of this surge was due to ongoing disruptions to global supply chains caused by the coronavirus pandemic. Russia’s war against Ukraine – in addition to causing immense human misery – has further contributed to inflationary pressures through its impact on energy and food prices. Over recent months, inflation has proved more persistent and become more broad-based than had initially been expected. Consequently, we have witnessed a turnaround in monetary policy at a global level as central banks have begun to tighten their policies. The SNB, too, has tightened its monetary policy and has lifted its policy rate back into positive territory. With the transition to a positive rate environment, the SNB has had to adopt a new approach to implementing its monetary policy in the money market. Our new approach features two elements: reserve tiering, also referred to as tiered remuneration of reserves, and reserve absorption by way of open market operations.1 This new approach takes into account the structural changes that have occurred in the money market since we were last in a positive rate environment. In particular, under these changed conditions, the new approach allows us to pursue our objective of keeping secured short-term Swiss franc money market rates close to the SNB policy rate. Tonight’s event offers an excellent and t tweet at 12:31pm: SNB'S MAECHLER: INFLATION IS MORE PERSISTENT AND WIDESPREAD THAN PREVIOUSLY THOUGHT. tweet at 12:31pm: SNB'S MAECHLER: THE FX-SWAP-MARKET TRANSMISSION IS NOT YET COMPLETE.