By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Álvaro Santos Pereira said on Wednesday that inflation was not broadening as quickly as in the previous inflationary episode, while highlighting the recent spike in natural gas prices as a development he was monitoring closely.

Speaking at a European Economics and Financial Centre event at the Portuguese Embassy in London, Pereira, who heads the Banco de Portugal, said that “[i]nflation is not spreading or is not broadening as fast as it happened in 2022.”

However, he cautioned that this did not mean a broader inflationary process could not emerge again, adding that the ECB would closely monitor any signs of inflation broadening over the coming months.

Pereira said the recent spike in natural gas prices was something he was watching particularly closely.

He also pointed to the impact of the AI boom on inflation and growth as another “shock” central banks had to contend with, and said that a number of risks had increased in recent months.