Further remarks by de Guindos
- Increase is due to technical factors
- Expects inflation to keep rising for the next 2-3 months
- Supply constraints is the component in inflation that is having a structural impact
The headline is a slight subtle shift in the fighting words by the ECB, as de Guindos now argues that "much" of the surge in inflation is temporary and not outright calling it as it is. As price pressures continue to stay elevated, expect a slow climb down from policymakers from their current stance as we are already seeing here.
