ECB’s Panetta Says Pay More Attention to Price Impact of Profits

European Central Bank Executive Board member Fabio Panetta said company profit margins might be having a bigger impact on inflation than is generally acknowledged, according to an interview with the New York Times.

“There’s a lot of discussion on wage growth,” Panetta told the newspaper this week, according to a post on the ECB’s website. “But we are probably paying insufficient attention to the other component of income — that is, profits.”