European Central Bank Francois Villeroy de Galhau Governing Council member said on Friday that the disinflation process in the euro area is on track. He also noted that the ECB's policymakers are gaining more confidence in the forecast on inflation and more scope to disregard smaller bumps in the disinflation process.
In addition, the official admitted that data is inherently noisy and there is a risk of overreacting to volatile news, especially until the end of this year. He added that being "data-driven" in the current inflation environment does not mean being "flash-driven".
Villeroy also argued that the ECB should refrain from changing its 2% inflation target, but highlighted that its adequate flexibility will be part of the central bank's strategy review next year.