ECB’s Schnabel: Sticky services inflation is keeping headline inflation at elevated level

European Central Bank (ECB) executive board member Isabel Schnabel said in her scheduled appearance on Thursday that “sticky services inflation is keeping headline inflation at an elevated level.”

Additional quotes

Price pressures in the services sector are broad-based and global.

Pass-through of higher wages to producer prices is stronger in the services sector.

Momentum in services remains high and above levels consistent with price stability.

Medium-term inflation projections often clustered around 2% target.

Wage growth expected to slow down as past price shocks unwind.

Private sector forecasts suggest conditions for soft landing remain in place.

Signs that transmission of monetary policy tightening is weakening.

Market reaction

EUR/USD is holding latest gains near 1.1175 following these comments. The pair is up 0.49% on the day, at the time of writing.