Euro-Area Inflation Gain Pressures ECB Outlook

The video discusses the recent inflation numbers and their implications for the European Central Bank (ECB). It highlights three main factors: a rise in inflation due to last year's events, increased oil prices affecting the outlook, and the lack of underlying inflationary pressure. The discussion also covers the impact of base effects on ECB policy, particularly in Germany, and the challenges faced by ECB President Draghi. The video concludes with an analysis of core inflation and the ECB's strategy for 2017, focusing on the tight labor market in Germany and the expected gradual increase in core inflation.

What challenges does the ECB face in explaining its policy to the German public?

What expectations does the ECB have regarding core inflation in Germany over the next few quarters?