ECB's Rehn Signals Inflation Expectations Stable Amid Early Stagflation Signs

According to ECB Governing Council member Rehn, inflation expectations remain anchored despite early signs of stagflation emerging in the eurozone. Energy shocks are a key factor, though current intensity has not yet reached 2022 levels. Wage data to date have been reassuring. The ECB will release comprehensive forecasts at its June meeting and will conduct monetary policy in a robust manner.
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