European Central Bank Governing Council member Joachim Nagel said the slowdown in eurozone core inflation in August is a positive signal, noting that core inflation has declined and services inflation has also eased. He added that there is still no sign of second-round effects in core inflation.
Nagel said the outlook for the ECB’s rate decision next week is relatively predictable and aligned with financial market expectations, which have fully priced in a 25 basis-point rate hike. Earlier data showed eurozone inflation rose to 3.3% in August, while core inflation, which excludes volatile items such as food and energy, unexpectedly fell to 2.4%.
ECB Policymaker Nagel Says Eurozone Core Inflation Slowdown Is Positive Signal
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