In a recent statement, Luis de Guindos, vice-president of the European Central Bank (ECB), confirmed that fundamental price pressures in the Eurozone are beginning to ease. This is a major area of concern for ECB policymakers, and it appears that previous rate hikes are beginning to have an impact on the economy.
Speaking in London on July 7, de Guindos noted that while price pressures remain strong, most indicators are showing signs of easing. He pointed out that although it is still high in historical comparisons, the various measures underlying inflation have started to shrink recently.
However, De Guindos emphasized that the ECB’s task in the fight against inflation has not yet come to an end. The central bank will continue to closely monitor the prices of services.
Source: Reuters.
Cover image: Getty Images
