Euro zone not facing “stagflation”: ECB’s Schnabel says

FRANKFURT (Reuters) – The euro zone is not at risk of stagflation, or a period of high inflation coupled with stagnating economic growth, European Central Bank board member Isabel Schnabel said on Wednesday.

“I personally don’t see that we are in a stagflationary situation or that we are approaching a stagflationary situation,” Schnabel told a lecture.

“We do see relatively high inflation but we do not see stagnation,” Schnabel said. “Actually, most economies are growing quite strongly, much faster than what we call potential growth.”

(Reporting by Balazs Koranyi; Editing by Alison Williams)