Citation :
Euro zone inflation is set to go higher and price growth is likely to be more persistent than earlier thought, European Central Bank board member Isabel Schnabel said on Thursday, defending the ECB’s plans to raise interest rates further. “Inflation may actually be more persistent than we originally thought,” she said, adding that price growth has broadened out and there is now a large share of goods with price growth over 3%. While inflation is on the rise, economic growth is suffering and Schnabel said the risk of a recession was increasing. While that would normally mean a jump in the jobless rate, Schnabel said companies are struggling with labour scarcity so they may retain workers because re-hiring them later could be more costly.
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