Euro Zone Inflation Not Yet Widespread Despite Rising Gas Prices

Portuguese central bank chief Álvaro Santos Pereira expressed caution over euro zone inflation, saying it is not broadening as quickly as in past episodes. In a recent event at the Portuguese embassy in London, Pereira noted that while there are some signs of rising prices, particularly in gas costs, this does not necessarily mean the trend will continue.

The ECB's Governing Council member emphasized that policymakers are closely monitoring developments and are aware of the potential risks. He highlighted two key concerns: the surge in gas prices and the impact of the AI boom on global growth and inflation.

Pereira's comments come as the ECB has already raised euro zone interest rates twice this year, with financial markets predicting at least three more hikes over the next 12 months.