ECB’s Lagarde Says Inflation to Stay Near 2% in Months Ahead
Inflation in the euro area will probably remain near the European Central Bank’s goal for the time being, though the outlook is still clouded by the situation around tariffs, according to President Christine Lagarde.
Consumer-price growth is close to 2%, with underlying pressures consistent with achieving that level over the medium term, Lagarde told lawmakers in the European Parliament.
“We expect inflation to stay around our 2% target in the coming months,” she said Wednesday in Brussels. “Risks to the outlook continue to be two-sided, while uncertainty remains higher than usual owing to volatile global trade policies.”
After halving the deposit rate from a peak of 4%, ECB officials have signaled they don’t see a pressing need to adjust borrowing costs further. November’s reading showed prices increasing an annual 2.2% — a touch higher than in October. Core inflation, which strips out volatile energy and food costs, was unchanged at 2.4%.
The central bank has been predicting an undershoot of its target, however, which could be exacerbated by the planned delay of a new European Union carbon-pricing system. New forecasts featuring a first glance at 2028 will be presented after the next policy meeting on Dec. 18.
Those projections will “will shed further light on the outlook for growth and inflation,” Lagarde said.
Source : Bloomberg.com
