NICOSIA (CYPRUS) (Reuters) – Inflation in the euro zone will continue to decline in the coming months but at a slower pace, Bundesbank President Joachim Nagel said, according to comments to the Cypriot newspaper Kathimerini published on Sunday .

Inflation in the euro zone fell to 2.4% in November, compared to 2.9% in October, well below expectations for the third month in a row, and fueling market speculation that rates interest rate of the European Central Bank (ECB) could be lowered more quickly than it suggests today.

“We have not yet won the fight against inflation,” warned Joachim Nagel, also a member of the ECB Governing Council, visiting Cyprus last week.

He described inflation as a “stubborn and voracious beast”, adding that the next phase of tackling it would be the most difficult.

“Add in a scenario where an escalation in geopolitical tensions could imply higher inflation, and it becomes clear that it would be far too early to declare victory over high inflation rates,” he added.

(Michele Kambas, Gilles Guillaume for the )

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