Eurozone Inflation Forecasted to Rise Through 2026 Amid Ongoing Conflict

European Central Bank (ECB) President Christine Lagarde has warned that inflation in the eurozone will continue to rise through the end of 2026. According to her latest forecasts, things are expected to get worse before they get better.

The current inflation rate in the eurozone is already at an alarming level of 3.3% as of August. The ECB responded quickly by raising its three key interest rates by 25 basis points on Thursday. The new rates stand at 2.65%, 2.5%, and 2.9% respectively.

Lagarde attributed the rising inflation to the ongoing conflict in the Middle East, which is exerting further pressure on prices.