Oil Price Decline Eases Eurozone Inflation Pressure, ECB Official Says

An ECB Governing Council member, Madis Müller, said falling oil prices have eased price pressures in the euro area, leaving the European Central Bank in a favorable position after raising interest rates last month. According to Jin10, Müller said it was still too early to predict outcomes for the next two meetings in July and September, but officials had made clear that “we will not enter a new cycle of rate hikes.” Müller said the ECB was “in a favorable position” for now and that the balance of risks was at a reasonable level. He added that lower oil prices would ease inflation pressure in the services sector and said the ECB had not yet seen second-round effects.