LONDON (Reuters) – Underlying price pressures in the euro zone, a key focus for European Central Bank policymakers, are finally easing and past rate hikes have started to work their way through the economy, ECB Vice President Luis de Guindos said on Friday.
“While underlying price pressures remain strong, most indicators have started to show some signs of softening,” de Guindos said in London.
“While still wide by historical standards, the range of measures of underlying inflation recently began to narrow.”
De Guindos added the ECB’s “job (in fighting inflation) is not yet done” and the central bank would monitor the prices of services inflation and labour costs in particular.
(Reporting by David Milliken and Harry Robertson; writing by Balazs Koranyi; Editing by Francesco Canepa)
