While price gains are hovering around the 2pc target and should stay there over the medium term, the aftermath of the crisis is \u201cstill noticeable in some case,\u201d the Bundesbank president said yesterday in prepared remarks for a discussion in Frankfurt.<\/p>\n
Mr Nagel, seen as one of the ECB\u2019s more hawkish policymakers, cited surveys showing people still worry about further increases in euro-area prices, which grew at a peak of 10.6pc in October 2022 after Russia attacked Ukraine,<\/p>\n
\u201cThe ECB is of course keeping an eye on this, as well as on the continued strong services inflation,\u201d he said.<\/p>\n
The ECB is expected to keep interest rates unchanged for a fourth meeting in December.<\/p>\n
But a potential downward revision to the 2027 inflation outlook \u2013 due to a likely delay in the European Union\u2019s carbon-pricing regime \u2013 could encourage more dovish officials to argue for a cut.<\/p>\n
Increases in food and services prices, however, still top 3pc \u2013 supporting the majority\u2019s cautious view on further easing following the eight-quarter point rate reductions to date.<\/p>\n
Mr Nagel said yesterday that the ECB is \u201cin a good position\u201d and should continue to take decisions based on data and flexibly meeting by meeting.<\/p>\n
\u201cIn December, we\u2019ll have more data, new projections for the next two years and \u2013 for the first time \u2013 2028,\u201d he said.<\/p>\n
\u201cWe\u2019ll then see more clearly whether the monetary-policy stance remains appropriate.\u201d<\/p>\n
He again downplayed worries about this year\u2019s rally in the euro \u2013 seen by many doves as a key downside risk to the inflation outlook.<\/p>\n
\u201cThe euro\u2019s current valuation level isn\u2019t worrying,\u201d Mr Nagel said, adding that the dollar exchange rate, at about \u20ac1.16, isn\u2019t far off its historical average.<\/p>\n
In Ireland the latest consumer price index, for October, from the Central Statistics Office showed overall consumer prices rose by 2.9pc in the previous 12 months.<\/p>\n
Food and non-alcoholic beverages prices are up by 4.5pc in the year.<\/p>\n
The cost of a white sliced pan is up 7c to \u20ac1.68 in October this year compared with the same month last year.<\/p>\n
Bloomberg<\/p>\n","protected":false},"excerpt":{"rendered":"While price gains are hovering around the 2pc target and should stay there over the medium term, the…\n","protected":false},"author":2,"featured_media":199736,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[79,4393,179,18,19,185,17],"class_list":{"0":"post-199735","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ecb","10":"tag-economy","11":"tag-eire","12":"tag-ie","13":"tag-inflation","14":"tag-ireland"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115611626759850599","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/199735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=199735"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/199735\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/199736"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=199735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=199735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=199735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}