In an interview with Le Monde, ECB President Christine Lagarde expressed cautious optimism about Eurozone’s inflation path, noting that the target is “in sight” but stressing that inflation is not yet fully subdued. While headline CPI dipped to 1.7% in September, core inflation, excluding energy and food, remained elevated at 2.7%.
Lagarde acknowledged satisfaction with the recent drop in headline inflation but warned that “inflation is going to rise again in the coming months” due to base effects. Thus, she emphasized that “prudence is warranted.”
She reiterated the importance of reaching the 2% target “on a sustained and durable basis,” projecting that, barring any major shocks, the ECB expects this goal to be achieved by 2025.
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