FRANKFURT: Euro zone inflation appears to be heading back to 2% but plenty more data is needed before the European Central Bank can be comfortable that record-high interest rates have done their job, ECB vice-president Luis de Guindos said on Wednesday.

“Wage pressures remain high and we do not yet have sufficient data to confirm they are starting to ease,” de Guindos said in a speech in Split, Croatia.

ECB needs more inflation evidence before easing: policymakers

“Profit margins could also prove more resilient than anticipated.”

“While we are heading in the right direction, we must not get ahead of ourselves. It will take some more time before we have the necessary information to confirm that inflation is sustainably returning to our 2% target,” de Guindos said.