Tag Archives: core euro area inflation

Rising core prices, along with wage growth, should help the ECB along the road to policy normalisation.Euro area cyclical inflation has been slowly rising over the past few months, from low levels. Several measures of underlying inflation have broken out of the tight range around which they have fluctuated for the past three years.The ECB’s ‘super core’ inflation rate rose to a three-year high of 1.04% in August, with other indicators showing a stronger upward momentum. Today’s...

There were no policy changes at today's meeting of the ECB’s governing council (GC). Central bank seems intent on looking through short-term spikes in imported inflation.At today’s press conference following the GC meeting, ECB President Mario Draghi’s message was one of continuity, very much as expected. The stronger momentum in economic activity and headline inflation, he suggested, was no reason to declare victory as long as downside risks remain. Importantly, the ECB’s statement suggests...