FRANKFURT―The recent rise in euro zone inflation has a structural driver in supply disruptions and the European Central Bank has to watch out for any sign of wages increases, ECB vice-president Luis de Guindos said on Monday. The ECB officially expects price growth in the euro zone, which hit 3.4 percent last month, to ease back below its 2 percent goal next year, but many inside the bank fear inflation will prove stickier. De Guindos repeated the ECB’s projections but cautioned that some of the drivers of the recent inflation spike, such as supply bottlenecks and higher energy costs, were having a “structural” impact and might affect workers’ perceptions and wage demands. “This inflation increase is not only responding to base effects but there is also a component that is going to have a more structural impact,” de Guindos told a Spanish event. “This is having an impact that goes …
ECB’s de Guindos Flags Structural Driver in Inflation Rise
October 4, 2021
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Business & EconomyCompaniesECBEconomiesEuropeinflationInternationalLuis de GuindosriseStructuralWorld
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