European Central Bank Vice President Luis de Guindos: Oil price fluctuations will not affect the decline in inflation.

On June 24, European Central Bank Vice President Guindos said that the recent volatility in commodity prices due to the conflict between Israel and Iran will not change the inflation outlook in the euro area. “If oil prices go up — but it looks like oil prices are somewhat under control — that’s something we have to think about,” Guindos said on Tuesday. But the process of declining inflation is anchored. From what we’re seeing today, the process hasn’t been derailed, not at all. Officials are pleased with the direction of consumer prices, which have eased from record highs to just below the ECB’s 2% target, Kindos said. While it is still possible to sustain that goal in the coming months, he said the situation in Iran adds another layer of complexity to a context already loomed over global trade tensions. “We believe that our mission of price stabilisation will be fulfilled, but we always have to take into account that the level of uncertainty is brutal,” Guindos said. This forces us to be extra cautious. ”