Draghi Caution on Inflation Signals Stimulus Stays for Now
- ECB publishes updated economic projections on Thursday
- Price growth of 2% masks structural weakness in 19-nation bloc
ECB's Draghi Wants Signs of Sustained 2% Inflation
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Mario Draghi has left little doubt that he’s not ready to accept euro-area inflation has truly returned, and a closer look at data from the 19-nation region helps explain his hesitation.
The European Central Bank president will probably reiterate his assessment on Thursday that underlying price growth remains subdued even after inflation accelerated to 2 percent -- nominally above the institution’s goal. A hefty upgrade of near-term projections as flagged by Bundesbank President Jens Weidmann is unlikely to change that message.