Central Banks

ECB’s Schnabel Sees Profits and Wages Driving Domestic Inflation

  • Bundesbank chief Nagel says ‘still a way to go’ to tame prices
  • Investors looking for signs of when rate-hike cycle may finish

Isabel Schnabel

Photographer: Ben Kilb/Bloomberg
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European Central Bank Executive Board member Isabel Schnabel said price gains are being fueled by corporate profits and higher salaries for workers — warning that careful monitoring is still needed to to keep price pressures on a downward trajectory.

Looking at the drivers of inflation, “you can see that domestic prices pressures are driven by both profits and wages,” Schnabel told a panel in Berlin.