EPISODE · Nov 1, 2024 · 19 MIN
Will Euro Area Inflation Fall Below the ECB's Target?
from The Week That Was in Europe · host Klaus Adam and Dirk Schumacher
In this episode, we explore the inflation outlook for the Euro Area, honing in on whether medium-term inflation could once again fall short of the ECB's target, as it did before the pandemic. While there’s little evidence in current data to suggest an imminent undershoot—thanks to robust wage growth, persistent service price inflation, and ample room for monetary policy easing—some of these factors may ease in the coming year. This makes it crucial to keep a close eye on potential risks of undershooting.
What this episode covers
In this episode, we explore the inflation outlook for the Euro Area, honing in on whether medium-term inflation could once again fall short of the ECB's target, as it did before the pandemic. While there’s little evidence in current data to suggest an imminent undershoot—thanks to robust wage growth, persistent service price inflation, and ample room for monetary policy easing—some of these factors may ease in the coming year. This makes it crucial to keep a close eye on potential risks of undershooting.
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Will Euro Area Inflation Fall Below the ECB's Target?
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