The president of the German central bank, Joachim Nagel, has urged the European Central Bank (ECB) not to change its strategy despite falling oil prices and some easing in inflation.
"Inflation is still too high," the Frankfurter Allgemeine Zeitung cited Nagel as saying on Wednesday.
In June, the ECB raised key interest rates for the first time in nearly three years to combat the sharp rise in eurozone inflation sparked by skyrocketing oil prices after the outbreak of the war in Iran.
With signs of tensions easing in the Iran conflict, oil prices have fallen sharply. Brent crude oil recently dipped to about $73 per barrel - roughly the same as it cost before the fighting in the Middle East broke out at the end of February, driving oil prices as high as $120.
Speaking on the sidelines of the ECB forum in Sintra, Portugal, Nagel said he shares the surprise felt by many economists at the scale and speed of the price drop, adding that this had not been anticipated even in the ECB's most optimistic scenario. However, he warned: "We should not completely overturn our view of inflation because of this."
