Inflation fell to 2.2% y/y (2.8% core) in 🇪🇺 and to 2.0% y/y in 🇩🇪. In a speech in Tallinn on Friday, the ECB’s @isabelschnabel.bsky.socialwww.ecb.europa.eu/press/key/da...

Isabel Schnabel argued that a timely return to 2% inflation in the euro area would require a sharp decline in corporate profit margins and less catch-up wage growth, and she asked whether real wages in Italy and Germany would remain well below pre-pandemic levels in the face of labour shortages.