In an interview with Kathimerini, ECB President Christine Lagarde enunciated the bank’s determined path: “We are determined to bring inflation down to 2%. According to our projections, we will get there in 2025.”
This determination comes against a backdrop of soaring prices affecting economies worldwide, with ECB focusing not just on the broader inflationary metric but also on its constituent parts. “When we measure inflation, we pay attention to the headline rate,”
Delving into the specifics, Lagarde acknowledged the significant volatility in food prices, a primary concern for policy-makers and consumers alike. She highlighted a future clouded by environmental uncertainty: “Is the price of food going to be higher in the future? That’s a possibility if you look at the impact of climate change.”
Lagarde also touched on the societal impact of inflation, particularly the strain on the vulnerable populations. “Let me say that our mandate is to ensure price stability, and this is the best contribution we can make to social peace and to society, to the most vulnerable of its members in particular.”
