LONDON (Reuters) – Underlying inflation in the euro zone remains on a steady upward path, European Central Bank policymaker Philip Lane said on Friday, even though September data published earlier on Friday came well below expectations.
“We’re fairly sure that core (inflation) is on an upward path, again not spectacular but steady enough,” Lane, Ireland’s central bank chief, told a conference. “The support of more jobs, more labour income driving consumption is very strong.”
The ECB has long argued that inflation excluding food and fuel prices would rise towards the end of this year as wages and employment rise. But data have yet to confirm these expectations, raising concerns that price pressures may take even longer to build.
(Reporting by William Schomberg and Helen Reid; Editing by Gareth Jones; Writing by Balazs Koranyi)