Inflation & Prices
Euro-Zone Prices Driven More and More by Demand, ECB Study Says
Euro price signs on a clothing stall in the Plaza Mayor of Vic, Spain.
Photographer: Angel Garcia/BloombergThis article is for subscribers only.
Underlying inflation in the euro area is increasingly driven by higher demand, according to the European Central Bank, which has listed the trend among reasons to lift borrowing costs.
While the currency bloc’s record price growth has been influenced in large part by supply disruptions and energy shortages, a new study by the ECB shows “the importance of demand factors has gradually increased over time.”