Inflation Signals Give Draghi Little Respite on Path to QE Exit
- Consumer-price growth slowed in June but core rate accelerated
- Lautenschlaeger says ECB must prepare now for normalization
Peter Hooper Says Inflation Inhibits Central Banks
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Another month of inflation data, and Mario Draghi still doesn’t have a definitive sign that the European Central Bank can consider ending its monetary stimulus.
Consumer-price growth weakened in June even as the core rate picked up, backing the ECB president’s call for persistence with loose policy and prudence in signaling its withdrawal. At the same time, the figures provide some fodder to colleagues such as Executive Board member Sabine Lautenschlaeger, who urged a faster pace in preparing for normalization.