“We are at 2%, that is the target we have had and it is the projection our team indicates for the medium term,” commented Christine Lagarde during the panel at the ECB Forum taking place in Sintra, when asked about the data released today by Eurostat.
The official noted that this is a “reached target,” something that should be acknowledged, especially after having faced “massive shocks” and now being in the disinflationary process.
Nonetheless, there is still “a lot of uncertainty, increasing risk of fragmentation, and geopolitical developments that are concerning,” Lagarde admitted, reminding that these pose a dual risk to inflation, both to accelerate and decelerate.
In this context, it is necessary to “remain vigilant, deliver our goal,” emphasized the official, asserting that the ECB is “well-positioned for turbulent waters.”
The annual inflation rate in the eurozone is estimated to have been 2.0% in June, up from 1.9% in May and 2.5% in the same month of 2024, according to a provisional estimate released by Eurostat today.
According to the European Union’s statistics service, examining the main components of euro area inflation, services are expected to show the highest annual rate in June (3.3%, compared to 3.2% in May), followed by food, alcohol, and tobacco (3.1%, down from 3.2% in May), non-energy industrial goods (0.5% compared to 0.6% in May) and energy (-2.7%, improving from -3.6% in May).
