MNI BRIEF: EZ Core Inflation To Fall Soon –De Guindos
ECB VP says core inflation set to slow in coming month.
Core inflation will soon moderate as indicators are starting to suggest that it is coming down, European Central Bank’s vice president Luis de Guindos said Monday.
“The worst has passed and it will moderate”, he said, pointing to stubborn levels have been impacted by a slow in the decline of energy prices and a services sector that has seen demand and unit labour costs increase. (MNI SOURCES: Hawks Aim For ECB Hike Before Data Ties Hands)
He noted margins are moderating and could signal an absorption of higher wages by companies, as the ECB wanted to see. “We are starting to see that this year [margins] are behaving differently from the past one”, he said.