ECB Keeps Close Eye on Euro Zone Inflation Despite Rate Hikes

European Central Bank (ECB) policymaker Álvaro Santos Pereira says inflation in the euro zone is not broadening as quickly as it did in 2022. Speaking at a recent event, Pereira noted that while there are concerns about rising natural gas prices and the impact of the AI boom on global growth and inflation, current data suggests that inflation is contained.

Pereira's comments come after the ECB raised euro zone interest rates for the second time this year. Financial markets are pricing at least three more rate hikes over the next 12 months.

The Portuguese central bank chief emphasized that policymakers are closely monitoring developments, particularly in light of recent gas price surges.