ECB chief economist Peter Praet said while the central bank cannot yet declare “mission accomplished” on inflation, ” we have made substantial progress on the path towards a sustained adjustment in inflation.”
Praet acknowledged that “the latest economic data and survey results have generally surprised to the downside, suggesting some loss of momentum in economic activity.” But he pointed out that “temporary factors may also be at work”. He emphasized that “we will also need to monitor whether, and if so, to what extent, these developments reflect a more durable softening in demand.”
