The Eurozone is seeing “a big reversion” of the exogenous shocks that triggered the inflationary surge in the region, Bank of Portugal governor Mario Centeno said Thursday, citing the fall in gas prices, consumption and industrial goods.

“TTF gas prices are down 68.5% year on year today and are below the maximum level in both 2018 and 2019,” said Centeno noting that the same thing was happening with consumption and industrial goods with a decrease of 25% year on year.

“We need to see this in our CPIs. We need markets to work,”, he said adding that if that is not reflected policymakers will face more difficult choices. Despite that, Centeno said that the euro area will see “more tightening for some time” and that interest rates won’t come down as soon as many would like.