Finance
ECB expects food inflation to settle just above 2%
Published by Global Banking & Finance Review®
Posted on February 26, 2026
1 min readLast updated: February 26, 2026
Quick Summary
Lagarde said the ECB expects food inflation to ease and settle just above 2% by late 2026. She reiterated headline inflation should converge to 2% as wage growth slows and the eurozone economy holds up.
ECB Sees Food Inflation Stabilizing Slightly Above 2% by Late 2026
Consumer Perception of Price Stability
ECB Food Inflation Outlook and Policy Context
FRANKFURT, Feb 26 (Reuters) - The European Central Bank expects food inflation, which is crucial for consumers' perception of price stability, to settle just above its 2% target late this year, ECB President Christine Lagarde said on Thursday.
Lagarde’s Outlook for Food Prices
"Looking forward, we expect it to continue to decline and stabilise somewhat above 2% as of late 2026," Lagarde told a committee of the European Parliament.
Wage Growth and Euro Area Activity
Path Toward 2% Headline Inflation
Lagarde repeated the ECB's expectation that headline inflation will converge to its 2% goal over the medium term as wage growth eases and the economy hums along despite a challenging trade environment.
(Reporting by Francesco Canepa; editing by Balazs Koranyi)
Key Takeaways
- •ECB expects food inflation to decline and stabilise slightly above 2% by late 2026.
- •Headline inflation is projected to converge to the 2% goal over the medium term.
- •Christine Lagarde delivered the outlook to a European Parliament committee.
- •Cooling wage growth underpins the disinflation trend despite trade headwinds.
- •Guidance reinforces the ECB’s commitment to its 2% price stability target.
Frequently Asked Questions about ECB expects food inflation to settle just above 2%
1What is the main topic?
The ECB’s outlook for prices, with Christine Lagarde saying food inflation should settle just above 2% while overall inflation converges toward the 2% target.
2When is food inflation expected to stabilise?
By late 2026, with the ECB anticipating a level slightly above its 2% target.
3What factors support the ECB’s view?
Moderating wage growth and a resilient eurozone economy, despite ongoing trade-related headwinds.
