ECB Watchful of Euro Zone Inflation After Gas Price Surge

European Central Bank Governing Council member Alvaro Santos Pereira said that euro zone inflation is not broadening as quickly as it did in 2022. Speaking at an event, Pereira noted that policymakers remain attentive to developments, particularly after a recent surge in gas prices.

Pereira emphasized the importance of monitoring the situation closely over the coming months to determine whether price pressures are becoming more widespread.

The ECB raised euro zone interest rates last week for the second time this year, and financial markets are pricing at least three additional increases over the next 12 months.