ECB Vice-President Luis de Guindos acknowledged the recent slowdown in CPI, which eased to 2.4% last month, describing it as “a positive surprise.” However, he cautioned that it was “too early to declare victory.”
De Guindos emphasized the influence of factors on slowing inflation like “base effect” and warned the potential inflationary impact of withdrawing government measures.
Additionally, he mentioned that “Unit labor costs are increasing in Europe and that is one of the concerns regarding the future evolution of inflation.”
Addressing market expectations, de Guindos observed the anticipation of a soft landing and a prolonged disinflation process in Eurozone. However, he warned, “Such an assumption may not be confirmed in reality due to high uncertainty.”
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/530197-ecbs-de-guindos-warns-against-early-celebration-of-inflation-slowdown/&media=https://www.actionforex.com/wp-content/uploads/2018/04/f-ecb13.jpg&description=ECB Vice-President Luis de Guindos acknowledged the recent slowdown in CPI, which eased to 2.4% last month, describing it as "a positive surprise." However, he cautioned that it was "too early to declare victory."){kind=link}