ECB Official Forecasts Inflation to Remain Above 3% Through Early 2027

According to Il Sole 24 Ore, ECB Governing Council member Fabio Panetta on July 15 forecast that inflation will remain above 3% through early 2027. Speaking at the Italian Bankers Association annual conference in Rome, Panetta stated the ECB will carefully assess energy markets, wage dynamics, and price developments in its policy decisions while targeting stable inflation expectations and limiting second-round effects.

Panetta highlighted that the global economy is navigating conflicting pressures: the Middle East conflict has raised energy prices and supply chain concerns, while artificial intelligence expansion is driving investment, technology trade, and consumer spending.