ECB’s Schnabel: Sticky services inflation is keeping headline inflation at elevated level

• Price pressures in the services sector are broad-based and global
• Pass-through of higher wages to producer prices is stronger in the services sector
• Momentum in services remains high and above levels consistent with price stability
• Medium-term inflation projections often clustered around 2% target
• Wage growth expected to slow down as past price shocks unwind
• Private sector forecasts suggest conditions for soft landing remain in place
• Signs that transmission of monetary policy tightening is weakening

It’s just a general take on the economy and what’s currently playing out in the euro area mostly. There’s nothing new to add to the ongoing narrative surrounding the ECB’s policy outlook.

This article was written by Justin Low at www.forexlive.com.