European Central Bank Executive Board member Isabel Schnabel said that she is confident of reaching the 2% inflation target next year – despite high price pressures in the services sector. However, she cautioned against focusing on precisely when the target will be achieved, saying that the journey may still be… “Bumpy” in 2025.
Some officials warn that price growth could become too weak if prices remain high for too long, with Bank of France Governor François Villeroy de Galhau saying last week that officials would “pay close attention” to such risks.
Schnabel does not view this as a significant risk, and expects the ECB’s December forecasts to show inflation remains “close to our medium-term target.”
