February 26, 2018 / 3:23 PM / a year ago

Euro zone economic slack may be bigger than thought: Draghi

FRANKFURT, Feb 26 (Reuters) - Euro zone growth is robust but slack in the economy may be bigger than estimated, slowing the rise of inflation, European Central Bank President Mario Draghi said on Monday.

“Given the uncertainty surrounding the measurement of economic slack, the true amount may be larger than estimated, which could slow down the emergence of price pressures,” Draghi told the European Parliament’s committee on economic affairs.

“This is particularly visible in the labour market, where wage growth has remained subdued despite strong employment gains,” he said. “Looking ahead, we anticipate that headline inflation will resume its gradual upward adjustment, supported by our monetary policy measures.” (Reporting by Balazs Koranyi; Editing by Catherine Evans)

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