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Opinion
Mark Gilbert

Multi-Speed Inflation Poses an ECB Dilemma

Prices are starting to rise, but at very different rates for different euro members.
Cheap. Maybe too cheap.

Cheap. Maybe too cheap.

Photographer: Alessia Pierdomenico/Bloomberg

The European Central Bank has spent the last few years battling the threat of deflation with a combination of negative interest rates and a bond-buying splurge. There's now enough evidence to suggest ECB President Mario Draghi should at last acknowledge that inflation has returned. But even if he does, the fissures underlying the euro zone economy will prevent the central bank from reacting in the usual way.

QuickTake Europe's QE Quandary