ECB Eco Bulletin: Underlying inflation pressures remain subdued

The European Central Bank (ECB) published its monthly economic bulletin on Thursday, underscoring concerns over inflationary pressures in the Euro area.

Key Headlines:

December measures succeeded in preserving very favorable financing conditions

Downside risks to outlook for global activity remain

Cites political uncertainty & financial imbalances

Global financial conditions have tightened

Euro area economic expansion is proceeding and strengthening, expected to firm further

Sluggish pace reforms, balance sheet adjustments dampening euro area econ. Growth

Underlying inflation pressures remain subdued

No signs yet of a convincing upward trend in underlying inflation

ECB GC will continue to look through changes in HICP infl. If judged to be transient & have no implication for m-term outlook for price stability