ECB Debate May Shift as Oil Prices Drive Inflation Higher

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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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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