ECB’s de Cos: Withdrawal of fiscal support measures could make inflation more persistent

Dhwani Mehta FXStreet

European Central Bank’s (ECB) policymaker Pablo Hernandez de Cos said on Wednesday, “withdrawal of fiscal support measures could make inflation more persistent.”

Additional quotes

‘Lower gas prices will eventually trigger reverse transmission on inflation.”

“The upward effects of energy and food commodity prices could still be significant in 2023.”

“Data, gas price developments point to inflation falling more strongly in the coming months than envisaged in December.”

“Recent data on euro area inflation and some of its key determinants are somewhat encouraging.”

Market reaction

At the time of writing, EUR/USD is trading 0.22% lower at 1.0709, undermined by a broad-based US Dollar strength.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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