ECB Risks Longer Inflation Undershoot as EU Delays Carbon Rules

A delay to the European Union’s new carbon-pricing system looks set to weigh on the outlook for inflation, potentially reviving calls for more interest-rate cuts.

To help soften the impact of the bloc’s green transition, governments and lawmakers want to postpone rollout of Emissions Trading System 2, which imposes costs on polluters and is likely to make things like fuel more expensive.