Finance Minister Wolfgang Schaeuble has warned that higher inflation could cause “political problems,” and German monetary officials are urging their peers to start devising an exit strategy from unconventional stimulus. “ECB-bashing in Germany will certainly speed up on Monday,” said Carsten Brzeski, an economist at ING-DiBa AG in Frankfurt. A slew of data this week will provide an update on growth, inflation and confidence in the euro-area economy. German companies are only partially passing on higher costs to clients, and consumers haven’t noticed a significant pickup in inflation. Wage growth has remained subdued despite above-potential growth over the past three years and a decline in unemployment to a record low.

Source: The Star January 29, 2017 21:33 UTC