ECB’s Nagel Cautions Against Excessive Optimism on Inflation

European Central Bank officials shouldn’t become too confident on reaching their inflation goal even if new data on that front are pointing in the right direction, Governing Council member Joachim Nagel said.

While a return to the 2% target this year looks possible, policymakers must remain prudent, especially in an environment of elevated uncertainty, the Bundesbank President told a panel discussion in Frankfurt. He spoke hours after reports showed price growth in France and Spain undershot expectations in March, raising hopes of another slowdown for the broader euro zone when Eurostat publishes a first estimate on Tuesday.