Economics

ECB Inquiry May Push for Overhaul of Inflation as We Know It

  • Including home acquisition costs would likely boost inflation
  • Knock-on effect might be seen in government borrowing costs

ECB headquarters in Frankfurt, Germany,.

Photographer: Peter Juelich/Bloomberg
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The European Central Bank’s decision to review how it measures inflation is likely to raise pressure for a much-needed overhaul of the gauge that guided officials to impose negative interest rates on the region.