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International Monetary Fund
"We anticipate an additional increase in inflation, but we have not yet observed indications of it becoming ingrained," she stated. "Currently, there is no indication that increasing energy costs are leading to higher wages."
The magnitude of the inflation shock cannot be overlooked, but Lagarde remarked that the ECB finds a cautious monetary policy response suitable to maintain control over inflation.
In August, consumer price increase in the eurozone rose to 3.2% year-on-year, up from 2.9% in the previous month, as reported by the EU's statistical office. Previously, ECB Chief Economist Philip Lane mentioned that inflation in the currency area would reach the 2% target level by mid-2027.
On Monday, Lagarde emphasized that inflation risks lean towards increased price growth, highlighting that the forecast for inflation faces greater uncertainty.
The ECB has increased key interest rates two times this year—in June and September. The upcoming meeting is planned for October 29. The majority of economists think the regulator will keep rates steady at the October meeting but will increase them by an additional 25 basis points in December, when new macroeconomic projections are published.
source: reuters.com
The magnitude of the inflation shock cannot be overlooked, but Lagarde remarked that the ECB finds a cautious monetary policy response suitable to maintain control over inflation.
In August, consumer price increase in the eurozone rose to 3.2% year-on-year, up from 2.9% in the previous month, as reported by the EU's statistical office. Previously, ECB Chief Economist Philip Lane mentioned that inflation in the currency area would reach the 2% target level by mid-2027.
On Monday, Lagarde emphasized that inflation risks lean towards increased price growth, highlighting that the forecast for inflation faces greater uncertainty.
The ECB has increased key interest rates two times this year—in June and September. The upcoming meeting is planned for October 29. The majority of economists think the regulator will keep rates steady at the October meeting but will increase them by an additional 25 basis points in December, when new macroeconomic projections are published.
source: reuters.com
