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πŸ‡ͺπŸ‡Ί The ECB has two inflation problems. Only one of them responds to rate hikes.

πŸ‡ͺπŸ‡Ί The ECB has two inflation problems. Only one of them responds to rate hikes.

Villeroy flagged conditional tightening readiness as negotiated wages run above 4% year-on-year; Lane separately warned that climate-driven food shocks could reignite headline inflation regardless of what the rate cycle does.

Portrait of ECB Chief Economist Philip Lane in a suit, arms crossed, smiling in an indoor setting with plants.
ECB Chief Economist Philip Lane warned that climate change could amplify inflation pressures through increased food price volatility. Source

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