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European Central Bank Vice President Luis de Guindos said underlying price pressures will stay elevated even as headline inflation slows.

“We believe that headline inflation is likely to decline considerably this year, while underlying inflation dynamics will remain strong,” he said in a speech at the Ambrosetti workshop in Cernobbio, Italy, on Saturday.

Guindos spoke a day after euro-area data showed core inflation, which strips out volatile elements like food and energy, hit a new record high.

Turning to financial-market turbulence, the ECB vice president said that the euro-area banking sector is “resilient, with strong capital and liquidity positions that are well above the minimum requirements.”

“It is too early to draw conclusions about the impact all of this will have on growth and inflation,” he said. “The turbulence may well be short-lived, but if amplification effects do emerge, they will show up in the data.”

He repeated the ECB’s stance that “bringing inflation down to our 2% medium-term target will remain data-dependent.”

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