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 factors are expected to support inflation in the medium term?

What are the projected annual CPI inflation rates for the euro area in 2019, 2021, and 2022?