FRANKFURT (Reuters) – The European Central Bank needs to keep a close eye on the recent rise in inflation expectations above its 2% target, ECB Vice President Luis de Guindos said on Thursday.
“Over the medium term most survey and market-based measures of inflation expectations indicate inflation rates around our 2% target,” de Guindos told a European Parliament committee.
“Inflation expectations have been rising in recent months though and initial signs of above-target revisions in those measures warrant close monitoring,” he added.
Inflation rose to 7.4% last month and while a quick retreat is expected in the second half of the year, there are growing concerns that some inflation will linger beyond the current crisis, keeping price growth over 2% in the years to come.
(Reporting by Balazs Koranyi; Editing by Francesco Canepa)
