ECB Study Finds Impact of Weak Euro on Prices Recedes With Time

The impact of currency moves on inflation have weakened in the 19-nation euro region, a European Central Bank study showed on Wednesday.

“Over time, the size of exchange rate pass-through is documented to have declined in the euro area and other advanced economies,” according to an article to be published in the ECB’s economic bulletin. “This decline can be attributed to several factors, including the low inflation environment prevailing in many economies over the past two decades and the changing composition of imports.”

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