(Bloomberg) -- The European Central Bank can’t yet say that inflation is in check, even after it slowed more than expected last month, according to Vice President Luis de Guindos.

The data “were a positive surprise,” but “central banks have to be cautious,” Guindos said in Madrid on Monday. While the “process of disinflation” is strong, he cautioned that “we are seeing very big wage increases” in parts of the euro zone.

Inflation in November came in at 2.4%, surprising economists and pushing investors to fully price in a interest-rate cut in April. The ECB is expected to stay on hold next week at its final decision of 2023.

Guindos stuck with the ECB’s mantra on the topic, saying that decisions would be made meeting by meeting and are data dependent. 

“Unit labor costs are increasing in Europe and that is one of the concerns regarding the future evolution of inflation,” he said. “We can’t declare victory.”

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