Vice President of the European Central Bank: Inflation data is developing in the right direction.

European Central Bank Vice President Luis de Guindos said that consumer price data in the eurozone is bringing some encouragement to policymakers. "Inflation has good news, but economic growth has not so good news," he said in Madrid on Thursday. "We expect inflation in the service sector to slow down in the coming months. Our expectation for inflation evolution is that it will stabilize towards the 2% inflation target in a clear and steady manner." The European Central Bank has cut interest rates three times since June and is expected to do so again next month. De Guindos insisted on the central bank's standard line that "the evolution of monetary policy will depend on inflation." He also emphasized, "The economic recovery we are expecting is not as strong as we anticipated." He said, "Household incomes have recovered slightly, but this has not translated into consumption." The outcome of the US election last week has cast a shadow over the economic prospects in the eurozone, as Trump's return to the White House could lead to tariffs being imposed by the US. De Guindos stated that while it is still necessary to observe which actual measures will be taken, protectionism will ultimately generate a supply shock that limits growth, echoing his previous comments.