The European Central Bank's (ECB) Vice President Luis de Guindos said on Thursday that the Eurozone's inflation is not to be as transitory as projected several months ago. In his view, the major reasons behind this are supply-side bottlenecks, which are more persistent than thought in the past, and energy costs, which are seen to remain quite elevated.
He added, however, that Eurozone's medium-term inflation risks are balanced, and he expects the region's inflation to be below the ECB's 2% target in 2023 and 2024.