The president of the European Central Bank (ECB) stated on Tuesday that the central bank’s target has been achieved, following data indicating that the eurozone’s inflation rate is projected to be 2% in June—meeting the ECB’s target.
“We are at 2%, which is the target we have had, and it’s the projection our team is indicating for the medium term,” commented Christine Lagarde at the panel during the ECB Forum in Sintra when asked about the data released by Eurostat.
The leader remarked that this is a “target achieved,” which is noteworthy, especially after overcoming “massive shocks” and currently being in a disinflationary process.
However, there remains “a lot of uncertainty, increasing risk of fragmentation, and geopolitical developments that are concerning,” Lagarde noted, acknowledging that these pose a dual risk to inflation, both to accelerate and to decelerate.
In this context, it is necessary “to remain vigilant and deliver our target,” emphasized the official, asserting that the ECB is “in a good position for turbulent waters.”
The president of the European Central Bank (ECB) stated today that the central bank’s target has been achieved, following data indicating that the eurozone’s inflation rate is projected to be 2% in June.
Lusa | 15:10 – 01/07/2025
Inflation Rate in Eurozone at 2%
The annual inflation rate in the eurozone is estimated to have been 2.0% in June, up from 1.9% in May and down from 2.5% in June 2024, according to a provisional estimate from Eurostat.
According to the European Union’s statistics office, looking at the main components of inflation in the euro area, 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%, against 3.2% in May), non-energy industrial goods (0.5% compared with 0.6% in May), and energy (-2.7% compared to -3.6% in May).
Among the euro currency countries, the highest inflation rates—as measured by the Harmonized Index of Consumer Prices (HICP)—are estimated in Estonia (5.0%), Slovakia (4.6%), and Latvia (4.0%).
Lusa | 10:06 – 01/07/2025
ECB Confirms “Symmetric Inflation Target”: What Does It Mean?
The ECB has confirmed its “symmetric 2% inflation target over the medium term,” meaning it will respond with the same energy and persistence if inflation rises too high or drops too low.
“Symmetry requires an adequately energetic or persistent monetary policy response to large and sustained deviations of inflation from the target in either direction,” stated the ECB in a communiqué.
The ECB established a symmetric medium-term inflation target of 2% four years ago, making both positive and negative deviations from this target equally undesirable.
The ECB will also have all existing instruments at its disposal to conduct monetary policy, including debt purchases and very long-term refinancing operations.
The choice, design, and application of these instruments will enable the ECB “to react swiftly to new shocks,” the ECB added in the communiqué.
The European Central Bank (ECB) confirmed today the “symmetric 2% inflation target over the medium term,” meaning it will respond with the same energy and persistence if inflation rises too high or drops too low.
Lusa | 12:30 – 30/06/2025
