Eurozone Inflation Will Be Challenging in Coming Months, ECB's De Guindos Says

By Hans Bentzien and Ed Frankl

Inflation in the eurozone in the coming months will likely be uncertain and bumpy, the European Central Bank's vice president said Wednesday.

"The next few months will be difficult, but we expect the disinflation process to continue from the beginning of 2025," Luis de Guindos said in a webcast with financial news service MNI in Frankfurt.

The central bank cut its key interest rate from a record high last week, after an intensive disinflation process, though de Guindos stressed the bank wouldn't follow a pre-decided path on interest rates at future meetings.

De Guindos conceded that the interest-rate cut hadn't been easy to communicate given the ECB also published higher growth and inflation forecasts, even though those projections increased only marginally.

The ECB will above all monitor services prices, including via wages and productivity costs, in view of the path of inflation, he added.

Write to Hans Bentzien at [e-mail] and Ed Frankl at [e-mail]

(END) Dow Jones Newswires

06-12-24 1058ET