ECB Governing Council member Pablo Hernandez de Cos said, “recent data on euro area inflation and some of its key determinants are somewhat encouraging, but the overall situation still requires caution”.
But he added that the evidence so far was very preliminary. Careful monitoring is required in some areas, including residual pass-through of inflation shocks, and the symmetry of pass-through of energy price delcines to core inflation and wages, as well ass the effects of Chinese reopening.
“All these will have to be assessed as part of the full projections exercise under way in the run-up to our March meeting,” De Cos said.
