ECB's Centeno warns of inflation uncertainty, urges caution

[December 20, 2021]    LISBON (Reuters) - European Central Bank Governing Council member Mario Centeno warned on Monday there was uncertainty about inflation that required constant monitoring, but added that fresh anti-COVID 19 lockdowns in Europe should not lead to price increases.

European Central Bank governing council member Mario Centeno speaks during an interview with Reuters in Lisbon, Portugal, March 15, 2021. REUTERS/Pedro Nunes/File Photo

He told reporters confinements and other consequences of surging infection numbers were worrying, but "should not lead to an increase in inflation, on the contrary".

"We have to remain cautious," he added.

ECB policymakers meeting last week sought a greater acknowledgement of inflation risks, sources close to the debate told Reuters, but the bank has stuck with its narrative that price growth will slip back below the target level on its own in late 2022.

(Reporting by Sergio Goncalves, writing by Andrei Khalip)

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