(Reuters) – The European Central Bank must consider surging house prices when assessing inflation as the property boom adds to risks of acting too late to tighten monetary policy, ECB board member Isabel Schnabel said in an interview with the Financial Times.
“If this [rise in the costs of home ownership] were included, it would have a substantial effect on measured inflation, in particular on core inflation, where the weight of owner-occupied housing is larger,” she said in the interview published on Tuesday.
(Reporting by Jahnavi Nidumolu in Bengaluru; Editing by Sandra Maler)
