ECB's Draghi says indications that inflation will recover are weakening

[FRANKFURT] Indications that core price inflation will recover in a sustainable manner have weakened, the president of the European Central Bank said in a speech to be delivered on Thursday.

"Signs of a sustained turnaround in core inflation have somewhat weakened," Mario Draghi will tell lawmakers in the European Parliament.

The remarks address a key barometer of economic health that is used to determine what further action, if any, the ECB will take to ease monetary policy.

"While the recovery will gradually strengthen the impulse underlying the inflation process, the protracted economic weakness of the past years continues to weigh on nominal wage growth, and this could moderate price pressures as we move forward," he said.

REUTERS