ECB President Lagarde said that uncertainty will continue to be a major characteristic of the global economy, which may make inflation more unstable. The ECB announced an updated strategy on Monday and concluded that no matter which direction there is a serious deviation from the target, it is necessary to adopt “appropriately strong or long-lasting” policy actions to ensure that price growth returns to the 2% level. Lagarde said that the global environment has fundamentally changed in the years since the pandemic, and in this new era full of uncertainty and supply shocks, companies have changed prices faster. “The world ahead is more uncertain, and this uncertainty is likely to make inflation more unstable.” Although the ECB believes that the inflation rate will remain around this level for the next few years, Lagarde admits that there is a risk because the pricing behavior of companies has changed.

ECB President Lagarde said that uncertainty will continue to be a major characteristic of the global economy, which may make inflation more unstable. The ECB announced an updated strategy on Monday and concluded that no matter which direction there is a serious deviation from the target, it is necessary to adopt “appropriately strong or long-lasting” policy actions to ensure that price growth returns to the 2% level. Lagarde said that the global environment has fundamentally changed in the years since the pandemic, and in this new era full of uncertainty and supply shocks, companies have changed prices faster. “The world ahead is more uncertain, and this uncertainty is likely to make inflation more unstable.” Although the ECB believes that the inflation rate will remain around this level for the next few years, Lagarde admits that there is a risk because the pricing behavior of companies has changed.