WASHINGTON (Reuters) – Underlying inflation in the euro zone is proving sticky, raising concerns that painfully high price growth could be more persistent, European Central Bank board member Isabel Schnabel told a conference on Wednesday.
Schnabel argued that quick nominal wage growth may be a sign of second round inflation effects while a widening of corporate profit margins is also a major driver of inflation.
“In general, I think the message is that core inflation is proving to be much stickier than headline inflation,” Schnabel told a National Association for Business Economics conference.
(Reporting by Howard Schneider; writing by Balazs Koranyi; editing by Chris Reese)
