The European Central Bank (ECB) is facing challenges in reaching its inflation target, according to Luis de Guindos, Vice President of the ECB. De Guindos stated that while they expect inflation to return to the two percent target next year, there are significant risks associated with the geopolitical situation in the Middle East. Factors such as an increase in company profits and upward pressure on wages could potentially contribute to the rise in inflation, while actions taken by the central bank to suppress demand may not be as effective as desired. Additionally, a deteriorating global economic situation could slow down inflation.
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