Investing.com -- Joachim Nagel, a policymaker for the European Central Bank (ECB) and president of Germany’s Bundesbank, expressed cautious optimism on Friday regarding recent inflation data from several euro zone economies. While the data is encouraging, Nagel warned against over-optimism as the ECB continues its efforts to further reduce inflation down to its 2% target.

Nagel made these remarks during an event in Frankfurt, emphasizing the importance of prudence, especially as the inflation target seems within reach. "The last mile is certainly also the stretch of road where prudence is important," Nagel said. He further warned about the tendency for over-optimism to set in when the goal appears close, stating, "I’d almost like to warn against that."

These comments reflect the ECB’s careful approach towards managing inflation within the euro zone. The ECB continues to work towards its goal of a 2% inflation rate, a target that has been a central focus of its monetary policy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.