ECB’s de Guindos: Disinflationary Process to Continue

29 January 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Monday said that the disinflationary process had been positive and would continue.

In a conference organised by Citi Private Bank in Madrid, de Guindos said that the ‘evolution of inflation has been positive, we consider that the disinflation process, if [there are] no accidents, will continue in the future.’

‘The good news is that inflation has fallen a lot’, he said. ‘Furthermore, all the underlying inflation indicators all point to a downward trend.’

The ECB remained data-dependent, he said, and was closely monitoring wage developments.

‘We look firstly at our own projections, a new round of projections is due in the next couple of months, secondly, at the evolution of underlying inflation, which as stated before is positive, and thirdly, at the intensity of the transmission of monetary policy’, he said.

Economic indicators showed weak growth in Europe, which would lead to a shift in markets' attention from inflation to economic growth, he said.