Housing bottlenecks could boost eurozone inflation – ECB paper says


Labour shortages, lack of building land and administrative procedures could boost eurozone house prices, according to a paper in the European Central Bank’s economic bulletin.

The eurozone has seen four years of growth in house prices, and the paper expects the trend to continue. This is the consequence of “the favourable impact of the very accommodative stance of monetary policy, improving labour market conditions and stronger balance sheets”, according to the paper, published on November 8.

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