Euro Zone Inflation Spreads Slowly, ECB Monitors Closely

Portuguese central bank chief Álvaro Santos Pereira expressed caution over euro zone inflation, stating that while it's not spreading as quickly as in 2022, policymakers are closely monitoring developments. Inflation remains a concern, particularly with recent increases in gas prices. The European Central Bank (ECB) increased euro zone interest rates last week for the second time this year.

Pereira serves on the ECB's Governing Council and emphasized that while inflation is not broadening at the pace seen in 2022, the possibility remains. He warned of potential risks, including the AI boom and its impact on global growth and inflation.