ECB not expected to respond to temporary dip in inflation, says Nagel

ECB Unlikely to Respond to Brief Dip in Inflation

Joachim Nagel, President of the Bundesbank, stated during a speech at the Karlsruhe Institute of Technology that a temporary drop in inflation below the European Central Bank’s target is not expected to trigger any immediate policy changes. He explained that although consumer prices may dip under the ECB’s 2% target in the next few years, projections indicate inflation will return to the desired level over time.

“There is no urgent reason to act, even if inflation slips just below our target in the upcoming quarters,” Nagel remarked. The central bank anticipates that inflation in 2026 will remain just under the target rate.