European Central Bank (ECB) Executive Board member Piero Cipollone said on Wednesday that he expects inflation to remain around the current level for the rest of the year. Earlier today, the annual inflation rate for March was confirmed at 2.4%. He predicted inflation will start dropping toward the 2% target next year and reach it by the middle of 2025, adding that the ECB could start easing its restrictive policy if the data coming in June and July support his assessment.
Cipollone also said incoming PMI data indicate the Eurozone is showing signs of economic recovery and that productivity is expected to rise as a result. However, he warned of a "major risk" from the Middle East crisis, noting that disruptions of oil production and transport could affect energy prices.
