Gita Gopinath: "The Fight against Inflation May Take Somewhat Longer"

The situation in the eurozone is much more fragile than in the U.S. Gopinath: It's true, high-energy prices are a particular burden on countries like Germany, whose economy is very dependent on energy imports. At least the Federal Republic has done better than expected; we had expected GDP growth to have slowed to 1.5 percent in 2022. Measured against that, it has done better, up 1.9 percent. Now, it seems that overall inflation may have already peaked. Gopinath: But core inflation – i.e., price increases excluding energy and food prices – is stubbornly high and will probably only start to fall toward the end of the year.