ECB’s Escrivá: Upward Revision of HICP 2025 Projection to be Considered ‘Transitory’

6 March 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member José Luis Escrivá said on Thursday that the ECB’s latest upward revision of its 2025 inflation projection should be regarded as transitory.

In a video posted by the Banco de España, which he heads, Escrivá said that the expected inflation path to 2% ‘has not been affected by the fact that we have revised the inflation forecast up to 2.3%, a revision that has been judged as transitory.’

The inflation projections were subject to upside and downside risks, he said.

‘We have also assessed the possibility that services or energy prices will not keep moderating as they have so far, or the possible effects of US tariffs’, he said.

The impact of a tariff war on inflation was ‘very uncertain’ because it would depend on retaliatory measures of affected countries and on the effect on supply chains, according to Escrivá.

‘In this uncertain environment, we will continue to monitor all the data in order to make interest rate decisions’, he said.