ECB's Rehn says inflation is gradually converging to target
Further comments by ECB governing council member Olli Rehn
- Today's report shows inflation just above 1%
- That reflects weak domestic price pressures
- ECB would benefit from considering to reassess monetary policy from time to time
- Temporary price level targeting would need thorough analysis
A rather realistic take on the situation by Rehn. The inflation level he's referring to is the core CPI reading which came in at +1.1% y/y earlier. There's still no evidence of a solid and sustained move higher in inflationary pressures just yet but it is gradually hovering towards the ECB's target and that's what they want to see next year as well when they look towards normalising monetary policy.