Speaking to CNBC’s Steve Sedgwick at the European House Ambrosetti Forum on Saturday, Monti said that economies, not only in the EU, could start to experience elements of “stagflation” similar to that seen in many countries in the 1970s.
Monti said, therefore, it will be “very important to manage wisely and in a coordinated manner this transition from a needed abundance of monetary and financial support to a more ordinary situation.”
Preliminary data released on Tuesday showed inflation in the euro zone hit a 10-year high in August, with consumer prices up 3% from a year ago.
