ECB's Lagarde Says Risks Tilted to Downside, But Less Pronounced

The video discusses the impact of geopolitical factors, protectionism, and market vulnerabilities on the economy, highlighting a slight improvement in these areas. It reviews Euro area inflation trends, noting an increase from 0.7% to 1% in late 2019, driven by higher service and food prices. The video also examines inflation expectations, labor market pressures, and their effects on inflation. It concludes with a medium-term outlook, predicting inflation growth supported by monetary policy, economic expansion, and wage growth, as reflected in the December 2019 Euro system projections.

What were the main contributors to the increase in Euro area inflation from October to November 2019?

• Higher services and food prices

• Stronger labor market

• Rising protectionism

• Increased oil prices

What is the expected trend for headline inflation in the coming months based on current oil futures prices?

• Rise somewhat

• Remain stable

• Decrease significantly

• Drop slightly

How have labor cost pressures been affected by the current economic conditions?

• They have decreased due to lower inflation

• They have weakened due to a loose labor market

• They have strengthened amid a tighter labor market

• They have remained unchanged

What factors are expected to support medium-term inflation increases?

• Rising protectionism

• Decreasing oil prices

• Monetary policy measures and economic expansion

• Weak labor market

According to the December 2019 euro system projections, what is the expected inflation rate for 2022?

• 1.4%

• 2.0%

• 1.2%

• 1.6%