In February, the core rate that is consumer prices without energy and food remained at 0.9 percent. In Wieland's opinion, this is no reason for clinging to the expansionary monetary policy. "It is not true that core inflation has to be at 2.0 percent," he said in an interview with "Frankfurter Allgemeine Zeitung". When the oil prices dropped, the core rate had only fallen marginally. However, the ECB had expanded its bond-buying program, Wieland argued.
Wieland sees the danger of the ECB waiting too long with tapering. In his opinion, this involves substantial risks. "The difficulties in adapting will increase", he said. According to Wieland, there is a risk of fiscal dominance as the Governing Council tried to prevent an increase in long-term rates with a view to highly indebted states. Meanwhile, Wieland sees interest-change risks rising in many banks.
Handelsblatt: "Inflation setzt Draghi unter Druck"
Reuters: "Inflationsschub im Euroraum befeuert Kontroverse um EZB-Kurs"
FAZ: "Inflation im Euroraum steigt auf 2,0 Prozent"