ECB's Villeroy: There is no risk of lasting inflation return in the euro area
Further comments by Villeroy
- Monetary policy should remain accommodative
This is pretty much the tagline among policymakers at the moment but even so, they may be forced to take some action in trying to deal with the risk of inflation in general.
Last week we saw US CPI being distorted by higher used cars and truck prices. That tells us this is a rather messy time when viewing the data in general but stuff like rising input cost inflation, which could persist for a while, is also hard to ignore.
And all of that is going to keep pressure on policymakers in the months ahead.