ECB policymaker Nagel said the slowdown in euro-area core inflation in August is
a positive signal, noting services inflation has eased and there is no sign yet
of second-round effects. He said the outlook for next week’s ECB rate decision
is relatively predictable and in line with markets; markets have fully priced a
25bp hike. Earlier data showed euro-area headline inflation rose to 3.3% in
August, reinforcing the case for a Sept. 10 hike, while core inflation excluding
food and energy unexpectedly fell to 2.4%.
