ECB’s de Guindos: 2% price goal to be reached sooner than later

• 2% price goal to be reached sooner than later.
• We can’t be complacent on fiscal risks for markets.
• Energy costs and the Euro to push inflation down.
• Some one-offs boosted Q1 GDP in Eurozone.
• New projections to go in ‘same direction’ as EU’s.
• Many risks we’ve flagged have become reality.

I don’t have the same conviction on the ECB reaching the 2% goal sooner than later, unless he’s talking about headline CPI which could be affected by lower energy prices. Services inflation has been running above 4% since 2022.

This article was written by Giuseppe Dellamotta at www.forexlive.com.