ECB President Christine Lagarde said a measured policy response remains appropriate as euro-area inflation rose to 3.8% in September from 3.2% in August, with energy prices expected to keep headline inflation elevated into 2027. Energy contributed 1.71 percentage points of the September rate and services 1.52 points, while inflation excluding energy, food, alcohol and tobacco stood at 2.5%. In a statement published Oct. 17 for the IMFC's 54th meeting in Bangkok, the ECB announced no new rate decision. Officials expect headline inflation to stay well above the 2% goal into the first half of 2027 before returning to around target near year-end, and Lagarde said no material spillover into other prices and wages has been seen. ECB projections put euro-area GDP growth at 0.9% for 2026, 1.4% for 2027 and 1.5% for 2028, with risks tilted toward higher inflation and weaker growth.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Lagarde Backs Measured Response as Euro - Area Inflation Reaches 3 . 8 %
Read the original on econotimes.com ↗
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ECBinflationeuroChristine Lagarde
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EUR/USD
▲ Likely positiveRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 1.12393 |
| Change that session | +0.16% |
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