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Repeat of 2022 inflation woes less likely but not excluded, ECB's Sleijpen says - Finance news and analysis from Global Banking & Finance Review
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Repeat of 2022 inflation woes less likely but not excluded, ECB's Sleijpen says

Published by Global Banking & Finance Review

Posted on June 17, 2026

1 min read

· Last updated: June 17, 2026

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ECB's Sleijpen: Chance of 2022 Inflation Repeat is Lower but Not Ruled Out

ECB Policymaker Comments on Inflation Risks and Economic Outlook

Current Assessment of Inflation Shock Risk

LONDON, June 17 (Reuters) - A repeat of the 2022 inflation shock that sent interest rates to their highest level in decades looks less likely at the current juncture but can't be entirely excluded, Dutch European Central Bank policymaker Olaf Sleijpen said on Wednesday.

Monetary Policy Concerns

"For monetary policy, the key issue is again the risk of second-round effects," Sleijpen said in a speech at an event organised by the European Economics and Financial Centre (EEFC) in London.

Impact of Geopolitical Developments on Oil Prices

The week's framework peace deal between the United States and Iran after nearly four months of war in the Middle East had also pushed down both spot market oil prices and market expectations for future levels, he added.

Outlook for 2022 Inflation Repeat

"A repeat of 2022 appears less likely, but it cannot be excluded."

Reporting Credits

(Reporting by Marc Jones; editing by Balazs Koranyi in Frankfurt)

Key Takeaways

  • Sleijpen cautioned that second‑round inflation effects remain the key policy risk—even if a 2022‑style shock seems less probable.
  • The U.S.–Iran framework peace deal, by potentially reopening the Strait of Hormuz, has already depressed spot oil prices and eased inflation expectations.
  • Despite improving indicators, the ECB continues to signal vigilance—underlying vulnerabilities mean that high‑inflation scenarios cannot be ruled out entirely.

Frequently Asked Questions

What did ECB's Olaf Sleijpen say about inflation in 2024?
Olaf Sleijpen stated that another 2022-like inflation shock is less likely but cannot be excluded.
What is the key risk for monetary policy, according to Sleijpen?
The key issue is the risk of second-round effects, where inflation influences wage and price-setting.
Can high interest rates return if inflation surges again?
Yes, interest rates could rise if another inflation shock similar to 2022 occurs.

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