De Guindos of the ECB: inflation in the euro area is gradually declining

During an interview with the radio station Onda Cero, Luis de Guindos, Vice President of the European Central Bank (ECB), stated that inflation in the services sector is slowing down. Highlighting this positive trend, he emphasized that a continued decline in this sector will be crucial to achieving the ECB's 2% inflation target.

According to ECB forecasts, the 2% price growth target is expected to be met in the first quarter of 2025. As reported by Bloomberg, regulators cite relatively favorable dynamics, despite ongoing geopolitical uncertainty.

Recent data shows that inflation in the services sector, which had remained around 4% for an extended period, dropped to 3.7% in February. This shift fosters hope for further improvement in the euro area, according to Bloomberg.