FRANKFURT—Euro zone inflation may fall more slowly than earlier thought, partly on persistent supply chain bottlenecks, but the European Central must not overreact by removing stimulus too quickly, two ECB policymakers said on Friday.
Inflation shot above 4 percent last month, more than twice the ECB’s 2 percent target, on soaring energy prices and industrial supply chain bottlenecks that are now proving to be bigger problems than thought even just a few weeks ago.
