Economics
Why It's Too Soon for Draghi to Celebrate the Return of Inflation
- Consumer prices rise 1.1%, core inflation increases to 0.9%
- Germany surprised with record inflation surge on Tuesday
Schulz: Inflation Validates ECB Purchase Reduction
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The euro area’s deflation scare has abated, but it may not yet be time for Mario Draghi to sound the all-clear.
While the region is experiencing the fastest consumer-price growth in more than three years, it’s still only at about half the pace of where the European Central Bank president would like it. At the same time, the core measure is even lower. It stood at 0.9 percent in December -- a five month high, but still only 0.3 percentage point away from its all-time low two years ago.