ECB Sees Upside Inflation Risks as Core Prices Peak in 2027
Updated
Updated · investinglive.com · Jul 9
ECB Sees Upside Inflation Risks as Core Prices Peak in 2027
3 articles · Updated · investinglive.com · Jul 9
Summary
ECB meeting accounts showed all members saw inflation risks tilted to the upside versus staff projections, even as they stressed headline inflation alone gives a misleading picture.
2027 is when core and non-energy inflation are expected to peak before easing, but policymakers said underlying price pressures still look persistent rather than temporary.
Wage indicators were described as less responsive than previously expected, suggesting second-round inflation effects through pay may be lower than feared.
The latest rate hike was framed as robust under the baseline outlook—not an insurance move—and the ECB repeated it will stay data-dependent, meeting by meeting, without guiding the rate path.
June inflation data have recently looked less troubling, leaving policymakers room to wait through the summer while external uncertainty, including fluid US-Iran tensions, clouds the outlook.