ECB Vice President is optimistic about inflation returning to 2% target

European Central Bank (ECB) Vice President Luis de Guindos expressed confidence that inflation will soon return to the regulator’s 2% target. He believes this trend will be supported by the anticipated strengthening of the euro, falling commodity prices, and continued economic uncertainty in the region. In an interview with the Austrian daily Die Presse, he cited these factors as key drivers behind potential interest rate cuts in the eurozone.

Last month, the Consumer Price Index (CPI) in the bloc was 2.2%. Meanwhile, core inflation rose more than analysts had predicted, partly due to the delayed Easter holiday, Bloomberg reported. However, risks to European economic growth are gradually diminishing, leading experts to suggest that the ECB may continue to ease monetary policy.

According to Luis de Guindos, a recession in the eurozone seems unlikely. However, officials will be closely monitoring inflation in the services sector, which is heavily influenced by wage trends in the region. Currently, growth in this area is showing signs of a gradual slowdown, the agency noted.