ECB Vice President Luis de Guindos Warns of Geopolitical Tensions’ Impact on Inflation in Euro Area Samantha Johnson, April 30, 2024 Luis de Guindos, Vice President of the European Central Bank, has expressed concerns about the potential impact of geopolitical tensions in the Middle East on inflation. He noted that achieving the ECB’s inflation target is a challenge and emphasized the risks associated with rising company profits and upward pressure on wages in the euro area. De Guindos also pointed out that the ECB’s efforts to suppress demand may not be as effective as desired, which could slow down inflation. Additionally, he acknowledged that global economic conditions could also have a dampening effect on inflation. The deputy governor emphasized the uncertain outlook for inflation, despite expectations that it will return to the ECB’s target of two percent next year. In conclusion, de Guindos highlighted a range of factors and risks that could influence inflation in the euro area, including company profits, wage pressures, global economic conditions, and geopolitical tensions in the Middle East. The ECB will need to closely monitor these developments and adjust its policies accordingly to achieve its inflation target. Economy