“There has been much less progress regarding domestic inflation compared to broader inflation measures,” said European Central Bank (ECB) chief economist Philip Lane, according to Reuters.
Main statements
“Although the near-term inflation outlook is somewhat bumpy, the expected convergence of inflation towards the target in 2025 will be underpinned.”
“The slowdown in wage growth is necessary for services inflation to converge to a rate compatible with meeting the 2% objective.”
“Although services inflation should decline somewhat in the short term, it is expected to remain relatively elevated for most of this year.”
“Wage pressures are gradually moderating, but remain high.”
“Headline inflation is expected to fluctuate around current levels in the near term.”
“It must be recognized that the current phase of disinflation is necessarily bumpy.”
Market reaction
The EUR/USD pair did not react to these comments and last traded at 1.0656, up 0.14% on the day.
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.
