LAGARDE BACKS MEASURED RESPONSE AS EURO - AREA INFLATION REACHES 3.8 %

What happened: ECB President Christine Lagarde said a measured policy response remains appropriate as euro-area inflation rose to 3.8% in September from 3.2% in August. Her Oct. 17 statement to the IMFC announced no new rate decision. Key numbers: September inflation 3.8%, August 3.2%. Energy contributed 1.71 points, services 1.52 points. Core inflation 2.5%. Why it matters: The ECB expects energy prices to keep headline inflation above its 2% goal into the first half of 2027, with a return near target by year-end. Lagarde said risks point toward higher inflation and weaker growth.

ECB President Christine Lagarde said a measured policy response remains appropriate as euro-area inflation rose to 3.8% in September from 3.2% in August. Her Oct. 17 statement to the IMFC announced no new rate decision.

The ECB expects energy prices to keep headline inflation above its 2% goal into the first half of 2027, with a return near target by year-end. Lagarde said risks point toward higher inflation and weaker growth.