European Central Bank (ECB) President Christine Lagarde reiterated the institution's commitment to achieving a 2% inflation rate by 2025. This pledge comes amidst global economic instability caused by escalating prices. The bank's evaluation process considers more than just the headline rate, taking into account individual components such as the volatility in food prices.
Lagarde warned of the potential future increases in food costs due to environmental uncertainty brought about by climate change. She emphasized that these fluctuations could further exacerbate the current economic turmoil. The societal implications of inflation were also discussed, with Lagarde pointing out the significant impact it has on vulnerable populations.
On Sunday, Lagarde pledged to lower the inflation rate to 2% by 2025, underscoring the ECB's core mandate of price stability and its role in promoting social peace. She stressed that this commitment directly affects all members of society, with a particular focus on supporting those most at risk through economic stability.
In both instances, Lagarde reinforced the ECB's mission, asserting that maintaining price stability is their primary contribution to social peace and protection of society's most disadvantaged groups.
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