“We may not even go back to building on the data we had before this conflict, because obviously supply chains have changed, and marine insurance risks may also increase,” Nagel added, referring to the fees that may be required to transport goods through the Strait of Hormuz.
Last Thursday, the European Central Bank raised interest rates for the first time since 2023, in a step that Nagel described as necessary as a result of the increase in prices in light of the conflict. Nagel rejected the criticism that it might hinder economic growth, according to the German news agency DPA.
The German Central Bank Governor said early this week that the bank is also ready to raise interest rates again next July.
Consumer prices in the euro zone rose by 3.2% last May, while corporate activity declined due to the repercussions of the war in Iran.
