G7 countries commitment to rein in rising inflation

21 May, 2022 | Pravina Srivastava

G7 countries are resolved to get inflation under control

The Group of Seven (G7) countries are resolved to get inflation under control, according to German Finance Minister Christian Lindner.

Lindner, speaking at a press conference following the G7 finance ministers and central governors meeting in Petersberg, Germany, urged central banks to rein in rising inflation.

According to a communique statement, “Inflation rates have reached levels not seen in decades across most G7 countries.”

The issue statement further stated “G7 central banks are closely monitoring the impact of price pressures on inflation expectations and will continue to appropriately calibrate the pace of monetary policy tightening in a data-dependent and clearly communicated manner, ensuring that inflation expectations remain well anchored, while being mindful of safeguarding the recovery and limiting negative cross-country spillovers.”

While hosting the press conference with Lindner, Joachim Nagel, the chief of the German central bank, Bundesbank, expressed his worries over inflation.

Nagel, who is also a member of the European Central Bank’s governing council, suggested earlier this month that the ECB should halt asset purchases in June and begin hiking interest rates in July as a first step.

At the Petersberg summit, the G7 ministers and governors confirmed their financial support for Ukraine. They also disclosed that the G7 countries have committed to providing Ukraine with 19.8 billion dollars in budget support by 2022.