The European Central Bank’s discussion on price stability is about to change its tone.
A record increase in Germany’s inflation rate, released on Tuesday, brought a New Year jolt to officials barely back at work and provided those critical of ever-larger stimulus with some of the hardest data yet to support their arguments. While the surge to 1.7 percent in the region’s biggest economy is mainly due to oil, its proximity to the ECB’s definition of price stability of just below 2 percent augurs a year when policy makers’ conversations may dwell more on economic numbers rather than just forecasts.
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