ECB President: Eurozone Inflation Hits Record High, but No Need to Panic

Data released by Eurostat on the 16th local time showed that the final eurozone inflation rate for September was 3.8%, up from 3.2% in August and consistent with the preliminary figure published earlier this month, the highest level in three years. Recently, European Central Bank President Christine Lagarde said there are two signals that have not yet appeared, and once they do, the ECB will have to take action. Lagarde said inflation data needs to be broken down, and a large portion of the increase stems from energy factors, with energy prices rising 18.8%. This will affect overall prices, and she is especially concerned about whether this round of energy price increases will spread throughout the economic system and produce second-round effects. We have not yet observed such a phenomenon. Short-term inflation expectations have risen somewhat, but medium- and long-term inflation expectations remain broadly at around 2%. If medium- and long-term inflation expectations continue to rise from current levels, or clear signals of second-round inflation effects emerge, action will be needed. For now, our measures are reasonable. (CCTV News)