The “surge in energy prices is reducing demand and raising production costs,” European Central Bank (ECB) Vice President Luis de Guindos said on Thursday.

Additional quotes

Developments point to slower growth in the period ahead.

Over the medium term most survey and market-based measures of inflation expectations indicate inflation rates around our two percent target.

Initial signs of above-target revisions in those measures warrant close monitoring.

Market reaction

The EUR/USD recovery from over five-year lows of 1.0483 seems to be picking up pace, as the pair trades at 1.0530, as of writing. The pair is still down 0.21% on the day.