The President of the European Central Bank, Christine Lagarde (here, February 22, in Finland), promised “to do everything necessary to bring inflation down to 2%”. TARMO LEHTOSALO/AFP
DECRYPTION – The increase in prices remains sustained in the euro zone. Soaring food takes over energy.
The rate hike is not about to end. After the brutal increase in its key rate in record time, from -0.5% before the summer of 2022 to 2.50%, the European Central Bank is not at the end of the road, contrary to the pious wishes of the markets, which they begin to mourn. “At this point, it is possible that we will continue down this path,” suggested Christine Lagarde, Thursday, on Spanish television. The President of the ECB promised to “do whatever is necessary to bring inflation down to 2%”.
We are still far from it. Admittedly, the average inflation rate in the euro zone has been falling for four months, from its peak of 10.6% in October to 8.5% in February. But last month’s figure shows only a much weaker-than-expected respite of just 0.1 points, after 8.6% in January. It should also be remembered that these annual increases are superimposed on already significant increases a year earlier.
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