ECB: Easing of inflation raises pressure

The pass-through of wage growth to prices is stronger and faster when inflation is higher to start with
The low inflation in the Eurozone has slowed down the transmission
The considerable growth slowdown, on the back of adverse foreign demand and uncertainty shocks, impairs this process even more
This raises pressure on the ECB to take action in order to dislodge core inflation, which remains stuck well below its objective

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BNP Paribas Team

BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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