ECB Targets 2% Inflation Rate by 2025 Amid Climate Change Risks

European Central Bank (ECB) President Christine Lagarde has reaffirmed the bank’s commitment to reaching a 2% inflation rate by 2025. This declaration comes amid a backdrop of global economic turbulence fueled by rising prices. The bank’s assessment framework takes into account not just the overall inflation figure but also specific components, particularly the volatility in food prices.

Lagarde expressed concern about potential future increases in food prices due to environmental uncertainties linked to climate change, noting that such variations could worsen the ongoing economic challenges. She also highlighted the societal consequences of inflation, emphasizing its considerable impact on vulnerable populations.

During her statement on Sunday, Lagarde reiterated the goal of achieving a 2% inflation rate by 2025, emphasizing the ECB’s fundamental mandate of ensuring price stability and its function in fostering social peace. She noted that this commitment affects every segment of society, with a particular emphasis on supporting those most at risk through economic stability.

Throughout her remarks, Lagarde reinforced the ECB’s mission, asserting that maintaining price stability is essential for promoting social peace and protecting the most disadvantaged members of society.

This article was generated with the support of AI and reviewed by an editor.