How is inflation affecting people and firms? Why are we raising interest rates? How will it help bring inflation down? Our host Katie Ranger talks to press officer Eva Taylor on The ECB Podcast. The views expressed are those of the speakers and not necessarily of the European Central Bank. Published on 20 December 2022 and recorded on 9 December 2022. In this episode: 01:03 – What is the impact of high inflation? How higher prices are affecting people and businesses in Europe, and who is hit the hardest by high inflation. 04:30 – What’s behind the high inflation we are seeing? What factors have been pushing prices up over the past few months and why the cost of food and energy is the main driver of inflation. 06:22 – How will raising interest rates help lower inflation? What central banks can do to control rising prices, why we are raising interest rates and what higher rates mean for people. 10:20 – What’s behind the idea of people’s inflation expectations? Why inflation expectations matter for us and how we can guide them. 13:32 Our guest’s hot tip Additional material: Our monetary policy statement at a glance, 15 December 2022 https://www.ecb.europa.eu/press/pressconf/visual-mps/2022/html/mopo_statement_explained_december.en.html Christine Lagarde, Luis de Guindos: Monetary policy statement (with Q&A), 15 December 2022 https://www.ecb.europa.eu/press/pressconf/2022/html/ecb.is221215~197ac630ae.en.html Press release: monetary policy decisions, 15 December 2022 https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp221215~f3461d7b6e.en.html The ECB Podcast: President Lagarde presents the latest monetary policy decisions, 15 December 2022 https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod221215_episode48.en.html The ECB Podcast: What interest rate hikes mean for you, the economy and inflation, 23 July 2022 https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod220723_episode38.en.html Explainer: We have raised interest rates. What does that mean for you? https://www.ecb.europa.eu/ecb/educational/explainers/tell-me-more/html/interest_rates.en.html European Central Bank https://www.ecb.europa.eu/home/html/index.en.html You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more https://pod.link/ecbpodcast