Draghi Confident Higher Pay Will One Day Fan Euro-Area Inflation
- ‘Ample’ degree of stimulus needed for inflation covergence
- ECB President addresses European Parliament in Brussels
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Mario Draghi said falling unemployment will eventually spur inflation in the euro region, even if there’s little sign of that just yet.
The European Central Bank president has been frustrated by how little workers have managed to increase their pay, perhaps because they’re basing demands on the low inflation of the past few years or because they are more concerned about job security. Draghi on Monday argued many of the factors holding workers back are “transitory,” but that subdued inflation pressures highlight a need for further monetary support.