Eurozone economic recovery is firming, broadening and becoming more resilient, but underlying inflation is yet to signal a convincing upward trend, implying that the single currency economy still needs massive stimulus, European Central Bank policymaker Peter Praet said Monday.
"We need to look through the recent surge in inflation, which is driven by transient factors that will probably fade before long," Praet, who is the ECB chief economist, said in a speech in Madrid.
"Our conclusion that a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up and support headline inflation in the medium term remains valid."
Eurozone recovery and inflation outlook are still predicated on the very favorable financing conditions that to a large extent depend on continued monetary policy support, Praet noted.
"Absent that quantum of support, the progress towards a sustained adjustment that we see in our projections is likely to be slower or even stall," he cautioned.
"Underlying inflation pressures still give scant indications of a convincing upward trend as domestic cost pressures, notably wage growth, remain subdued," Praet said.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.