ECB Official Highlights Second-Round Inflation Risks for Eurozone Policy

An ECB board member identified second-round inflation effects as the primary factor shaping eurozone monetary policy.

Sleijpen said the risk of second-round effects guides decisions on interest rates and other measures. He noted that wage pressures and persistent price increases in services could sustain inflation above target levels. Officials continue to track labor market data and consumer price readings to assess whether initial shocks have fed into broader wage and price setting.

The ECB has held rates steady in recent meetings while reviewing incoming economic indicators. Sleijpen's comments underscore the importance of preventing temporary price rises from becoming embedded in expectations. Data releases scheduled for later this month will provide further evidence on whether second-round pressures are materializing across member states.