off-the-wire

Euro zone underlying inflation proving sticky -ECB's Schnabel

Kitco Media
By Reuters
Published:
Updated:
Reuters
WASHINGTON, March 29 (Reuters) - Underlying inflation in the euro zone is proving sticky, raising concerns that painfully high price growth could be more persistent, European Central Bank board member Isabel Schnabel told a conference on Wednesday.


Schnabel argued that quick nominal wage growth may be a sign of second round inflation effects while a widening of corporate profit margins is also a major driver of inflation.


"In general, I think the message is that core inflation is proving to be much stickier than headline inflation," Schnabel told a National Association for Business Economics conference. (Reporting by Howard Schneider; writing by Balazs Koranyi; editing by Chris Reese)

Reuters Messaging: balazs.koranyi.thomsonreuters.com@reuters.net))
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