ECB President Christine Lagarde addressed the European Parliament’s Economic and Monetary Affairs Committee, discussing inflation trends, economic growth, and the divergence between actual and perceived inflation.
Christine Lagarde, President of the European Central Bank (ECB), delivered a speech at the hearing of the Committee on Economic and Monetary Affairs of the European Parliament.
She highlighted that this week marks four years since Russia’s aggression against Ukraine, expressing solidarity with Ukraine and those affected by the war.
The euro area has faced high inflation and geopolitical challenges. Inflation peaked at 10.6% in October 2022 and declined to 1.7% in January 2026. The ECB’s monetary policy has been effective in bringing inflation toward its 2% target.
Despite the decline, surveys show that many citizens perceive prices to be rising faster than official data indicate. Perceptions of inflation tend to be higher than measured inflation, which can influence economic behavior, expectations, and trust in institutions.
Perceptions are shaped by personal experiences, consumption patterns, and psychological factors, such as focusing more on price increases. Food inflation and media coverage also influence perceptions.
Lagarde emphasized the importance of effective communication and financial education to align perceived inflation with actual inflation. The ECB continues to monitor inflation perceptions to maintain trust and economic stability.
She concluded by stressing the importance of collaboration between policymakers and the public to reinforce trust in the ECB and the euro.
More information can be found at the official ECB press release: ECB press release.
