Economics
Euro-Area Inflation Slowdown Undermines Hawkish Calls to End QE
- Price growth weakens to 1.4% in December from 1.5% in November
- Underlying rate was expected to rise but instead holds at 0.9%
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European Central Bank policy makers who marked the turn of the year by pushing for an end to crisis-era stimulus measures just got a reminder that they’ll have to wait a while longer for price pressures to pick up.
Despite solid economic growth, euro-area inflation slowed to 1.4 percent last month from 1.5 percent, and the underlying rate unexpectedly failed to rise from a meagre 0.9 percent. The data highlight the difficulty for the ECB in judging when to pull back, even as some Governing Council members warn of the dangers of postponing the decision too long.