Trichet made the statement when he stressed the importance of “regaining inflation control” during his meeting with reporters on the sidelines of the G20 Global Financial Stability Conference, which was hosted by the Ministry of Finance and the Korean Development Institute run by the Korean government.
Trichet also said that the ongoing war in Ukraine has led to a significant rise in energy and food prices, especially in European countries and in all global economies that depend greatly on imports in these areas.
With tackling inflation being the top priority for major countries, the former head of the European Central Bank said it was important for the policies of central banks and governments to move in the same direction.
“We cannot allow inflation to take hold. I would say we need to regain control of inflation,” Trichet said.
He added: “It is certain that the central bank and the government need to move towards the same direction, because one of the potential difficulties is that the government is moving towards a direction opposite to the central bank.”
He added: When you are in a situation, especially the problem of inflation, it is good from the citizens’ point of view to have price stability.
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