ECB’s Kazimir: Disinflation progress encouraging, but further proof needed

ECB Governing Council member Peter Kazimir expressed growing confidence in the disinflation trend, stating in a blog post today that the path to lower inflation appears to be on “solid footing”.

Kazimir added that if upcoming data continues to confirm accelerated disinflation, the ECB would be in a “strong and comfortable position to continue the easing cycle.”

However, he noted that wage growth and services inflation, two critical elements, have yet to show the expected decline. He added, “If new information points toward higher inflation, we can still slow down the pace at which we remove restrictions in the coming meetings.”