Piero Cipollone, a member of the European Central Bank’s Executive Board, firmly ruled out stagflation risks on April 30, arguing that the euro area’s current economic picture differs significantly from the 1970s. Headline inflation in the euro area climbed to 3.0% in April, up from 2.6% in March, driven by a 10.9% year-on-year surge in energy prices linked to Middle East tensions. The ECB projects inflation to moderate to around 2.8% by June, and Cipollone described inflation risks as « very balanced, » signaling roughly equal upside and downside pressures. The Governing Council kept interest rates unchanged, while long-term inflation expectations remain anchored near 2%.
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