Core inflation becomes the core problem of inflation – economic policy

Vienna/Frankfurt – According to ECB Director Isabel Schnabel, the markets may underestimate the stubbornness of inflation in the euro area. Markets expect inflation to fall very quickly towards 2 percent and then stay there while the economy also does well, Schnabel told Bloomberg. “That would be a very good result, but there is a risk that inflation will prove more persistent than what is currently priced into financial markets,” said the member of the European Central Bank’s (ECB) six-strong executive team.