ECB's de Guindos: Expecting inflation to continue accelerating until November

In an interview with Het Financieele Dagblad, European Central Bank's (ECB) Vice President Luis de Guindos said that they expect inflation to continue accelerating until November this year and then fall to 1.7% in 2022 and 1.5% the year after.

Additional takeaways

"Inflation this year may turn out even higher than we now think if the supply problems persist."

"So far we have seen few wage rises on the back of the higher prices."

"The pandemic has widened the disparities between countries with a low deficit and low debt and countries with a high deficit and high debt."

Market reaction

The EUR/USD pair is edging lower in the early American session and was last seen trading flat at 1.1764.