The ECB Warns that Inflation Will Be Around the 3% Threshold in 2026, Above the 2% Target Pursued by the Institution. Iran's War Complicates Calculations and Can Pave the Way for Further Increases in Interest Rates.
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Philip Lane warns that prices will remain around 3% for the remainder of 2026, a level still too high for the ECB's target and that it complicates further reductions in the cost of money.
Inflation in the euro area is expected to remain around 3% 2026, above the 2% target that the European Central Bank is pursuing....
The euro area inflation rate will remain at close to 3% for the remainder of 2026, although price developments will depend to a large extent on whether the Middle East crisis is finally resolved, as anticipated by the Chief Economist of the European Central Bank (ECB), Philip Lane.
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