Eurozone Inches Closer to Inflation Goal, Says ECB's Lagarde

Christine Lagarde, President of the European Central Bank, announced that the euro zone is nearing its medium-term inflation goal. Despite the current 2.2% inflation reading, challenges persist, especially with services inflation. Lagarde and Irish central bank's Gabriel Makhlouf urged caution against drastic interest rate cuts or retaliatory trade measures.

European Central Bank President Christine Lagarde has signaled that the euro zone is on the verge of achieving the ECB's medium-term inflation target, as reported by the Financial Times. Lagarde insists on maintaining vigilance, especially concerning services inflation, despite the overall inflation dropping to 2.2%.

Lagarde emphasized opposition to retaliatory trade actions in response to tariff threats from former U.S. President Donald Trump, arguing that such strategies could harm the global economy. Echoing her concerns, Irish central bank chief Gabriel Makhlouf highlighted ongoing issues with services inflation.

Looking ahead to 2025, Makhlouf expressed uncertainty over the economic landscape influenced by Trump's unpredictability. He advocates for gradual interest rate adjustments, cautioning against sudden, large cuts that might disrupt price stability.

(With inputs from agencies.)