SINTRA, PORTUGAL (Reuters) – The euro zone is “very advanced” in its disinflation target but there are still “question marks” over the outlook for economic growth, European Central Bank President Christine Lagarde said on Tuesday.
“We are very far along the path to disinflation,” she told the ECB’s annual Central Banking Forum. “We are in this slow recovery that emerged in the first quarter and which we hope will persist, but all of this is tainted by uncertainty and big question marks about the future,” she added.
Speaking on inflation as data released this morning by Eurostat showed eurozone price growth slowed as expected in June, Christine Lagarde said it was not essential for services inflation to fall back to the 2% target.
According to her, the growth in prices of manufactured goods remains below this level, which balances the overall index.
“We don’t need to have services at 2% because manufacturing goods are below 2% and ultimately it will be a balance,” she said.
(Report by Francesco Canepa, by Claude Chendjou, edited by Blandine Hénault)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
