Inflation Target Challenged, What's Next for ECB?

English summary

On September 1, as energy market volatility intensified and eurozone inflation pressures re-emerged, the ECB's policy focus shifted from economic growth recovery to energy prices and inflation persistence. Markets expect August inflation to rise to 3.3%, up from 2.9%, with international crude oil back above $90/barrel. Internal ECB concerns over inflation risks have strengthened, and investor expectations for further rate hikes have increased.