MNI BRIEF: Lower Inflation Path Remains Bumpy - Lagarde
Headline inflation is slowing towards the ECB's 2% target, but bumps in the road, ECB President says.
Eurozone headline inflation was lower in June but the path to the 2% target in the second half of 2025 remains bumpy, with services inflation still appearing sticky, European Central Bank President Christine Lagarde said Tuesday.
Speaking on a panel at the ECB's Sintra monetary policy forum, Lagarde said policymakers needed to focus on whether the shift in services inflation was structural or not. She also emphasised that the ECB did not necessarily need to reduce services inflation to 2% to meet its target.
Lagarde said the ECB took into account decisions by other central banks, including those the Federal Reserve, but overall the eurozone data would be a prime driver of any Governing Council decision .Earlier on Tuesday, Eurostat published preliminary June inflation data, with headline slowing to 2.5% from 2.6% in May. Core inflation was unchanged at 2.9%.