ECB Adjusts Inflation Forecast Due to Energy Prices

In a recent press conference, European Central Bank (ECB) President Christine Lagarde shared updates on the bank's inflation targets. Contrary to previous expectations, the 2% inflation goal is now projected to be reached "very early" in 2026, rather than late 2025.

Lagarde highlighted the significant impact of energy prices on the latest forecasts. "Based on future prices for oil and gas, it was reasonable to adjust our inflation projection upwards by 0.2%," she explained.

Future Monetary Policy Adjustments to Consider Multiple Risks

Lagarde also pointed out several critical factors that ECB policymakers must consider for future monetary policy adjustments. Among these, energy prices, trade policy, and potential retaliatory measures are of paramount importance.