The Bank of #España : Inflation is falling, but risks are lurking
Good news for Spain: inflation is falling. But the Bank of Spain calls for caution and warns about labour and economic challenges.
The new governor of the Bank of Spain, José Luis Escrivá, has shown moderate optimism regarding the evolution of inflation in his country. During his speech at the annual meetings of the #FMI and the World Bank in Washington, Escrivá pointed out that the downward trend in prices is good news, and that it is expected to continue until reaching the 2% target set by the European Central Bank.
However, the governor wanted to qualify this optimism. He warned that it is necessary to maintain vigilance over certain factors that could generate uncertainty in the coming months. Among them, he highlighted the importance of analyzing in greater depth the behavior of inflation in the services sector, where wage pressures could generate certain rigidity. In addition, Escrivá has pointed out that consumer and investment demand is weaker than expected, which could affect economic growth.
