ECB’s Patsalides: Disinflation Progressing Smoothly, Services Still a Source of Upward Price Pressure
2 December 2024

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Christodoulos Patsalides on Monday said that disinflation was proceeding well but that services inflation was still an issue.
In remarks before Cypriot Parliament, Patsalides, who heads the Central Bank of Cyprus, said, ‘Recent inflation data confirm that the process of disinflation is progressing smoothly, and is expected to reach the medium-term target of 2% by 2025.’
Interest rates would stay restrictive as long as needed to ensure this, he continued, and the Governing Council would take its decisions from meeting to meeting based on available information and without pre-committing.
ECB monetary policy had played a ‘major role’ in the disinflation to date and continued to dampen some price pressures, he said. Still, domestic services continued to be a source of upward inflation pressure, he said.