Finance
ECB's schnabel warns of scars from post-pandemic inflation spike
Published by Global Banking & Finance Review®
Posted on March 11, 2026
1 min readLast updated: March 11, 2026
Quick Summary
ECB executive board member Isabel Schnabel warned on March 11 in Frankfurt that the post‑pandemic inflation surge has left lasting “scars” on companies and consumers—making them expect rapid and sustained price rises. She noted geopolitical risks such as energy supply disruptions from the Iran war a
ECB's Schnabel: Post-Pandemic Inflation Spike Leaves Lasting Scars
Impact of Post-Pandemic Inflation on the Eurozone
Scars Left on Companies and Consumers
FRANKFURT, March 11 (Reuters) - The post-pandemic spike in inflation has left scars on companies and consumers, which now know that prices can rise fast and settle at a higher level, ECB policymaker Isabel Schnabel said on Wednesday.
Schnabel's Remarks on Inflation Episode
"These are certain scars from this high-inflation episode," Schnabel told an event in Frankfurt. She cautioned, however, that some of the energy supply lost to the Iran war could come back and monetary and fiscal policies are less expansive now than in 2022.
Reporting and Editorial Credits
(Reporting by Francesco Canepa; Editing by Kirsten Donovan)
Key Takeaways
- •Post‑pandemic inflation has altered expectations—businesses and households now anticipate faster, higher price increases, creating lasting scars on the economy.
- •Geopolitical tensions, particularly the Iran conflict, pose renewed upside inflation risks via energy shortages and price volatility.
- •Monetary and fiscal policies are currently more constrained than in 2022, reducing flexibility to respond to shocks compared to the height of the inflation surge.
Frequently Asked Questions about ECB's Schnabel warns of scars from post-pandemic inflation spike
1What concerns has ECB's Isabel Schnabel raised about post-pandemic inflation?
Isabel Schnabel warned that the recent spike in inflation has left lasting scars on companies and consumers.
2How have companies and consumers been affected by the inflation spike?
Companies and consumers now recognize that prices can rise quickly and remain at elevated levels.
