ECB official: No second inflation wave seen

European Central Bank official Olli Rehn's statements indicate that there are no clear signs of a second wave of inflation in the Eurozone, as the labor market is not currently experiencing a labor shortage similar to what occurred after the COVID-19 pandemic and the invasion of Ukraine. The bank is monitoring labor market developments and other factors to assess the inflation trajectory and monetary policy, reaffirming that the market is not tight at present. Rehn also supports the use of joint debt tools among the region’s countries to enhance defensive capabilities and is closely following the European political scene ahead of upcoming elections that could impact economic policies.

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