ECB’s Makhlouf: Inflation Persistence Warrants Caution

25 April 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Thursday said that even with disinflation progressing in many areas of the world, the stubborness of inflation ruled out complacency.

In a blog post on the website of the Central Bank of Ireland, which he heads, Makhlouf said, ‘Returning inflation to target should remain a policy priority, and its persistence warrants caution, notwithstanding that the rate of inflation has fallen in most regions across the world.’

The global economy seemed to be heading towards a soft landing, he said, but growth was weak. ‘As set out in the IMF’s Global Financial Stability Report, near term risks have receded as disinflation is entering its last mile but medium term vulnerabilities are mounting’, he said.

It was crucial that strong institutions managed the challenges arising from geopolitical tensions, regional conflicts and financial markets uncertainty, he said.