ECB Chief Admits Inflation Unpredictability Amid Global Economic Shocks

In a revealing speech at the European Central Bank’s annual conference in Sintra, ECB President Christine Lagarde openly acknowledged what many have suspected: the inflation rollercoaster gripping Europe and beyond is fueled by persistent and unpredictable global shocks, not mere market fluctuations. Lagarde highlighted key disruptive events—the COVID-19 pandemic and Russia’s aggressive invasion of Ukraine—as prime examples that have shattered economic stability. These shocks have fundamentally altered how companies price goods and services, forcing them to adjust prices with unprecedented frequency under permanent uncertainty. "It’s pretty basic but that’s the reality," Lagarde said bluntly. This admission underscores a structural shift...