However, surveys revealed that citizens perceive price increases faster than official statistics.
Medium‑Term Expectations Policy makers anticipate that inflation will stabilize at the 2% target in the medium term, boosting growth.
Risk Factors Rising euro Cheap Chinese imports Impact of perceptions on consumer expectations These factors could negatively affect private consumption and increase wage demands, challenging price stability.
ECB’s Approach The ECB closely monitors household inflation expectations and continues its transparency efforts.
Lagarde emphasized the bank’s commitment to openness.
Lagarde: ECB Continues to Monitor Inflation Perceptions
ECB President Christine Lagarde highlighted a downward trend in inflation but noted that public perception of price rises is higher than official data. Medium‑term stability at the 2% target is expected, though euro gains and cheap Chinese imports pose risks.
Sources
- Bloomberght · baglanti