Climate change can drive inflation – Economy

Heating is particularly expensive this winter – and that’s just the beginning: the conversion of the economy to climate neutrality can lead to higher inflation, warned Isabel Schnabel, Director of the European Central Bank (ECB), in an interview with the Süddeutsche Zeitung. In this case, monetary policy would have to react, she announced. This threatens a conflict between the ECB and the European governments, who want to achieve climate change quickly.