ECB's Muller: Inflation will continue to fall over the coming two years

The European Central Bank (ECB) Governing Council and Bank of Estonia Governor, Madis Müller said on Tuesday that the Middle East geopolitical tensions are causing energy prices to rise again and the potential of this spreading is one of the main risks to eurozone inflation. 

Key quotes

“Inflation in the euro area is clearly coming down.”

“Geopolitical tensions are causing energy prices to rise again, and the conflict in the Middle East and the danger of it spreading are one of the main risks facing the decline of euro area inflation.”

“Inflation is still too high.”

“One of the main causes the relatively fast growth in wages.”

Market reaction

The comments above have little to no impact on the Euro. The EUR/USD pair is trading higher on the day at 1.0577, as of writing.