The European Central Bank (ECB) Vice President Luis de Guindos highlighted significant progress in reducing inflation, but emphasized that it's too early to declare victory. He noted that upcoming data will indicate a continued decrease in inflation. However, Guindos cautioned that the outlook remains fraught with risks.
He pointed out that geopolitical conflicts might increase energy and shipping costs, while persistent wage growth and extreme weather could prolong price pressures. Additionally, previous interest rate hikes may suppress demand and inflation more than anticipated. Weak global economic growth further compounds the downward risk.
