European Central Bank (ECB) President Christine Lagarde said on Wednesday that the institution would seek to set a new inflation target that is easy to understand and based on a measure that better reflects people's daily lives.
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"
We should have an inflation target that the public can easily understand,
" said the Frenchwoman at the opening of a conference in Frankfurt devoted to the ECB and its observers.
To date, the ECB has focused all of its action on the objective of a price increase "
close to but less than 2% over the medium term
", a definition which dates back to 2003, at a time when the dominant fear was that of too high inflation in the euro zone.
If the ECB is unable to change the actual measure of inflation, its general concepts will need to “
capture the costs people face in their day-to-day lives and reflect their perceptions
”, including the cost of real estate, pleaded Christine Lagarde.
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This also applies to climate change, "
which could have an impact on inflation with gradual changes in the energy mix
as we move to a carbon neutral economy
"
.
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