Economy Euro zone inflation to rise more slowly: Lautenschlaeger

Euro zone inflation to rise more slowly: Lautenschlaeger

Image result for Sabine Lautenschlaeger, executive board member of the European Central bank (ECB)
Sabine Lautenschlaeger, executive board member of the European Central bank (ECB)

Euro zone inflation will take longer to rise as political uncertainty is weighing on growth and the European Central Bank underestimated slack in the labor market, ECB board member Sabine Lautenschlaeger said.

“The number of people who lost their jobs in the crisis but never registered themselves as unemployed has been underestimated,” Austrian newspaper Der Standard on Monday quoted Lautenschlaeger as saying.

Repeating the ECB standard line on uncertainty, she added that the threat of protectionism and Brexit are also weighing on sentiment and thus on growth and inflation.

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