ECB president Christine Lagarde warns European inflation could persist

Business Sep 13, 2026

Christine Lagarde, president of the European Central Bank (ECB), says inflation in Europe could stay high for a while, mostly because global conflicts, like the ongoing Middle East tensions and issues with Russian oil, are making energy prices unpredictable.

This means everyday costs keep going up, putting pressure on people's wallets and slowing down economic growth.

ECB raises euro-area rates to 2.5%

The ECB just raised interest rates to 2.5%: that's its second hike since the Iran conflict started earlier this year.

With inflation still above 3%, more rate hikes could be coming as it tries to get things back to its 2% target.

Projections now say we might not see inflation drop below 2% until at least 2028, even though the euro-area economy is holding up better than expected.