FRANKFURT, Germany (AP) — European Central Bank head Mario Draghi says he expects inflation to rise in the 19 countries that use the euro as a stronger job market pushes up wages.
Draghi’s comments Monday before the economic and monetary committee of the European Parliament in Brussels indicated the bank continues to think the recovery is strong enough for it to phase out its bond-purchase stimulus at year end.
Draghi told the committee members that the bank was confident that the pick-up in wages would continue because wage agreements often last two years or more.
The bank has pumped 2.5 trillion euros ($2.95 trillion) in newly printed money into the economy through the monthly bond purchases, trying to raise inflation from dangerously weak levels toward its goal of just under 2 percent annually.