Lagarde: The Eurozone is facing the problem of intensified inflation Fluctuation.

Jin10 data reported on July 1, the President of the European Central Bank, Lagarde, stated that uncertainty will continue to be a major feature of the global economy, which may cause inflation to be more unstable. The European Central Bank released its latest strategy on Monday and concluded that “appropriate and strong or lasting” policy actions are needed to ensure that price growth returns to the level of 2% whenever there is a significant deviation from the target in either direction. Lagarde indicated that the global environment has undergone fundamental changes in the years following the pandemic, and in this new era filled with uncertainty and supply shocks, businesses have changed prices more rapidly. “The future world is more uncertain, and this uncertainty is likely to make inflation more unstable.” Although the European Central Bank believes that the inflation rate will remain around this level in the coming years, Lagarde acknowledged the risks as businesses’ pricing behavior has changed.