European Central Bank faces pressure from record inflation

By The Associated Press

Officials at Europe’s central bank have inflation on their minds. The increase in consumer prices hit a record last month in the 19 countries that use the euro currency. And markets are wondering when the bank will join the U.S. Federal Reserve and others in raising rates. But it’s not so simple in Europe. High inflation is largely imported through higher oil prices, which doesn’t generally respond to central bank moves. A slowing economic recovery is another argument for not raising rates yet. Analysts think bank President Christine Lagarde may drop hints about the timing for a possible rate increase later this year after the ECB meets Thursday.