ECB President Christine Lagarde said that despite the significant increase in prices in the eurozone, the citizens of the region should not doubt the ECB's ability to stabilize inflation.
"We are watching the inflationary situation very closely and remain committed to price stability, which is extremely important for consolidating inflation expectations and confidence in the currency," Lagarde said.
Official data released on January 7 showed that consumer inflation rose by 5.0% per annum in December, setting a new record high and more than twice exceeding the ECB's target of 2%. The data also showed that in December, the core CPI - excluding energy and food prices - increased by 2.6% per annum after a similar increase in November. Economists had expected an increase by 2.5%. Economists note that the rise in inflation to a new record high confirms that price pressure has not completely eased yet and that ECB policymakers underestimate the situation. Given that core inflation is also above 2%, it will continue to put pressure on the ECB to take action.