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MNI INTERVIEW: Wages Set To Refuel German Inflation-ZEW Chief

(MNI) LONDON

The ECB still faces a challenge in achieving its inflation aims, Achim Wambach says

German inflation is likely to pick up slightly in coming months, particularly in services, with tight labour markets putting upward pressure on pay, ZEW president Achim Wambach told MNI, adding that it was too early to say how close the European Central Bank is to achieving its inflation target.

German inflation expectations remain generally anchored, the president of the Leibniz Centre for Economic Research said in an interview, but he added that negotiated wages in particular could see upwards pressure.

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German inflation is likely to pick up slightly in coming months, particularly in services, with tight labour markets putting upward pressure on pay, ZEW president Achim Wambach told MNI, adding that it was too early to say how close the European Central Bank is to achieving its inflation target.

German inflation expectations remain generally anchored, the president of the Leibniz Centre for Economic Research said in an interview, but he added that negotiated wages in particular could see upwards pressure.

Keep reading...Show less