ECB Should Pay ‘Particular Interest’ to Rising Food Prices: Blog

Rapidly rising food costs are especially relevant for monetary policy right now as they could drive inflation expectations higher, according to a European Central Bank blog post.

In findings that support caution on further reductions in interest rates, economists Elena Bobeica, Gerrit Koester and Christiane Nickel highlighted a much wider gap between food and overall prices than in the past that’s “clearly exceptional and persistent” and hurts poorer households the most.