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(CEP News) Frankfurt - Inflation is Europe's main challenge, European Central Bank Governing Council member Athanasios Orphanides said in a speech given in Frankfurt, Germany on Friday, adding that the situation is not expected to rapidly improve.
In his speech, Orphanides stressed that the effects from the previous increase in commodity prices still remain and speculated on the effect of a rebound in oil prices. The central banker also suggested that slowing economic growth in the euro zone may not lead to lower inflation and emphasized that the ECB must maintain its focus on its mandate of price stability. Furthermore, making reference to current wage negotiations, Orphanides added that the central bank was worried about wage indexation schemes and would be monitoring wage talks closely. By Todd Wailoo,
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, edited by Sarah Sussman,
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