ECB’s de Guindos: ‘Inflation Is Expected to Hover Around Our Target’

28 April 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Vice President Luis de Guindos said on Monday that inflation was expected to fluctuate in the vicinity of the ECB's 2% target.

In the presentation of the ECB Annual Report 2024 to the Committee on Economic and Monetary Affairs of the European Parliament, de Guindos said, ‘Looking ahead, inflation is expected to hover around our target.’

Trade tensions created more uncertainty around the inflation outlook, he said.

‘Declining energy prices, further wage moderation and a stronger euro could dampen inflation, potentially amplified by weaker demand for euro area exports and a re-routing of other countries’ exports into the euro area’, he said.

On the other hand, a potential supply chain disruption could put upward pressure on import prices and thus, on inflation, according to de Guindos.

‘Especially given current uncertainty, we will continue to follow a data-dependent and meeting-by-meeting approach to setting the appropriate monetary policy stance, and we are not pre-committing to a particular rate path’, he said.