ECB Vice-President Luis de Guindos said the current increase in inflation is “not only responding to base effects but is also a component that is going to have a more structural impact.” He added, “this is having an impact that goes beyond what we were expecting only a few months ago.” He expected supply bottlenecks to ease but emphasized the importance to “avoid second-round effects”.
On monetary policy, de Guindos said it will “remain accommodative but the goal is price stability.” “If economic activity normalizes, PEPP will have accomplished its mission.”
