Risk of Higher Euro Zone Inflation on the Rise: ECB’s Vasle

Risk of Higher Euro Zone Inflation on the Rise: ECB’s Vasle
The headquarters of the European Central Bank (ECB) in Frankfurt, Germany, on March 12, 2016. Kai Pfaffenbach/Reuters
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LJUBLJANA—Euro zone inflation is at risk of overshooting projections so the European Central Bank needs to carefully monitor price growth and should end its emergency stimulus programme next March, ECB policymaker Bostjan Vasle told Reuters.

Inflation has surged above the ECB’s target due to a long list of one-off factors, leading to fears that what was once considered a temporary price rise could become more permanent through higher wages and corporate pricing structures.