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ECB Warns AI and Geopolitics Make Inflation Fight Tougher

Summary by Financial Times
Structural shifts are making the world more volatile, warns central bank in updated strategy statement

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Christine Lagarde explains the ECB's new challenges in the fight against inflation. Geopolitical tensions and supply shocks affect prices more than before.

·Munich, Germany
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The European Central Bank (ECB) warned yesterday, June 30, about “new challenges” – from commercial tensions to Artificial Intelligence – that would make inflation more volatile, and promised flexibility in its monetary policy.The warning came in the first major review of the ECB’s strategy since 2021, and follows several tumultuous years in which the central bank had to fight a historic rise in consumer prices.The institution maintained its inf…

The global economy has entered a new era, characterized by a set of structural challenges that threaten to generate greater instability and that test the traditional manuals of the world's leading central banks. Factors such as growing trade tensions, disruption of artificial intelligence and the economic impact of climate change are creating an environment where inflation is more difficult to predict and control, forcing monetary authorities to…

·Costa Rica
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L'Opinion broke the news in on Monday, June 30, 2025.
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