ECB's Lagarde Unveils Inflation Forecasts

The transcript discusses the impact of accommodative monetary and fiscal policies on inflation, highlighting a gradual increase in underlying inflation over the medium term. It examines survey and market-based indicators of inflation expectations, noting subdued levels despite some market increases. The Euro area inflation projections for 2021-2023 are outlined, with revisions for 2021 and 2022 due to temporary factors and energy prices. Core inflation, excluding energy and food, is projected to rise slightly over the same period.

What is the expected effect of accommodative monetary and fiscal policies on inflation?

• A gradual increase in underlying inflation

• A rapid increase in inflation

• No change in inflation

• A decrease in inflation

What are the projected annual inflation rates for the euro area in 2021 according to the June 2021 projections?

• 1.9%

• 1.5%

• 2.0%

• 1.7%

How does the June 2021 inflation projection for 2022 compare to the March 2021 projection?

• It is revised down

• It remains the same

• It is revised up

• It is significantly lower

What is the main reason for the revised inflation outlook for 2021 and 2022?

• Temporary factors and higher energy prices

• Changes in fiscal policy

• Permanent economic changes

• Decrease in energy prices

What is the projected HICP inflation excluding energy and food for 2023?

• 1.5%

• 1.4%

• 1.3%

• 1.1%