ECB Vice President Luis de Guindo said the “the headwinds from high energy costs, the deterioration of terms of trade and the adverse impact of high inflation on disposable income pose elevated risks to our medium-term growth outlook.”
“Elevated inflation will remain with us for some time,” he added. “The risks surrounding inflation are on the upside.”
“In the coming months, we will have to navigate this challenging combination of shocks which is reducing growth and pushing up inflation,” he said.
