President of the European Central Bank: Eurozone Inflation Hits Record High but No Need to Panic

The data released by Eurostat on the 16th local time shows that the final inflation rate in the Eurozone for September this year was 3.8%, higher than August’s 3.2%, consistent with the preliminary figure announced at the beginning of this month, and marking the highest level in three years. Recently, European Central Bank President Lagarde stated that there are two signals that have not yet been observed, but once they appear, the European Central Bank will take action. Lagarde explained that it is necessary to break down the inflation data, pointing out that a significant part of the increase is due to energy factors, with energy prices rising by 18.8%. This will have an impact on overall prices, and there is particular concern about whether this round of energy price increases will transmit throughout the entire economic system and produce second-round effects. At present, such phenomena have not been observed. Short-term inflation expectations have already risen, but medium- and long-term inflation expectations generally remain at around 2%. If medium- and long-term inflation expectations continue to climb on this basis, or if there is a clear signal of second-round inflation effects, action will be necessary. At present, it appears that our measures are appropriate. (CCTV)