European Central Bank (ECB) President Christine Lagarde confirmed that inflation in the eurozone is gradually approaching the target level of 2%, emphasizing that financial stability remains a key component for ensuring price stability within the bloc.

In an interview with China’s Xinhua News Agency, Lagarde explained that inflation is moving toward the medium-term target level, which the ECB adopts as part of its mandate to maintain price stability and support economic growth in the euro area.

Her comments come following the ECB’s decision to lower its inflation forecasts, now projecting that inflation could reach 2% in 2025 and drop further to 1.6% in 2026, amid easing price pressures across the 20 eurozone member countries.

These projections reflect a gradual improvement in price dynamics after a wave of sharp increases, which had previously prompted the central bank to adopt a strict monetary policy in recent years in an effort to curb inflation.