ECB must watch above-target inflation expectations -ECB VP
2022.04.28 10:42
FILE PHOTO: Vice-President of the European Central Bank (ECB) Luis de Guindos gives a statement during the second day of the Informal Meeting of EU Ministers for Economics and Financial Affairs in Berlin, Germany September 12, 2020. Odd Andersen/Pool via
FRANKFURT (Reuters) – The European Central Bank needs to keep a close eye on the recent rise in inflation expectations above its 2% target, ECB Vice President Luis de Guindos said on Thursday.
“Over the medium term most survey and market-based measures of inflation expectations indicate inflation rates around our 2% target,” de Guindos told a European Parliament committee.
“Inflation expectations have been rising in recent months though and initial signs of above-target revisions in those measures warrant close monitoring,” he added.
Inflation rose to 7.4% last month and while a quick retreat is expected in the second half of the year, there are growing concerns that some inflation will linger beyond the current crisis, keeping price growth over 2% in the years to come.
