Draghi Jumps Brexit Hurdle to Find Oil Damping Price Outlook
- Cost of Brent crude fell 13% since U.K. voted to leave EU
- ECB is drawing up new forecasts ahead of Sept. policy meeting
President of the European Central Bank Mario Draghi.
Photographer: Fred Dufour/AFP via Getty ImagesThis article is for subscribers only.
Whenever Mario Draghi clears a hurdle on his path to higher inflation, a new one appears.
Just as the 19-nation economy sends encouraging signals that challenges from Brexit to terrorism won’t derail the modest recovery, a new decline in oil prices is casting a shadow over an expected pick-up in inflation. With growth not strong enough to generate price pressures, the European Central Bank president may have to revise his outlook yet again.