BERLIN — Energy prices will continue to rise but their effect on inflation should wane, Goldman Sachs chief economist Jan Hatzius said in an interview with the FAZ newspaper on Wednesday.
“We are expecting prices to continue to rise … there is certainly further growth potential,” Hatzius told the FAZ, adding the bank expected the price of Brent to rise to $105 a barrel by the end of the year.
Still, the effect of the increase from current levels of around $90 a barrel would be “no longer quite so significant” as the rise to $90 in recent months had been, the newspaper cited Hatzius as saying.
“Most of the causes of current high inflation rates are in my view temporary,” Hatzius told the newspaper. “The decisive factor for inflation in coming years will be central bank policy: how decisively and successfully central banks tackle inflation.”
In January, Goldman Sachs analysts said they expected Brent prices to reach $105 by 2023 due to “the reluctance to invest in oil during the energy transition and the gradual depletion of shale’s geological, midstream and service capacities.”
(Reporting by Victoria Waldersee in Berlin Editing by Zuzanna Szymanska and Matthew Lewis)