“Eurozone inflation is at risk of entrenching above 2%, so the European Central Bank will continue to fight excessive price growth, even if its policy response is shifting gearsFrench central bank chief Francois Villeroy de Galhau said late on Tuesday, according to Reuters.
Additional comments
Now we face the risk of entrenched inflationwhich resides in the underlying component.
Inflation has become widespread and may be more persistent.
Monetary policy has been more effective in tackling core inflation.
I expect price growth to return around the 2% target set by the ECB for the end of 2024 or the end of 2025.
At the ECB we are moving from a “sprint” to a “race to the bottom”.
The inflation outlook, core inflation readings, and the effectiveness of monetary policy transmission will be key factors in upcoming decisions.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
