The European Central Bank doesn’t need services inflation — a key focus as policymakers determine how much to lower interest rates — to slow to the 2% target, according to President Christine Lagarde. “Obviously, we don’t need to have services at 2% because manufacturing goods are below 2% and at the end of the day it’s going to be a balance between goods and services,” she told a panel Tuesday in Sintra, Portugal. “But we have to look really what is behind it,” she said. “And what’s behind it is a lot of wages. Services has a very high component of labor. Wages also suffer from the lag impact of the labor system ... (full story)