Peter Praet on the wires
– There is not yet sufficient evidence that the strengthening in PPI at the earlier stages of the pricing chain will be durably transmitted
The bold line isn’t anything we don’t already know needs to happen but its mention suggests that it may become a key focal point if Draghi want’s to grab an excuse not to tighten. Remember how the Fed virtually went through every excuse in the book why they weren’t going to hike meeting to meeting through 2015? Expect the ECB to do the same.