ECB’s Makhlouf Says Inflation Above 2% Is Bigger Risk Than Below That Threshold

European Central Bank Governing Council member Gabriel Makhlouf dismissed concerns about inflation dropping below the 2% target, saying he’s actually more worried that it will come in above that threshold.

While the Frankfurt-based central bank projects a temporary undershoot next year, Makhlouf said this isn’t a problem as long as the medium-term outlook remains anchored around 2%. Food inflation — which has been trending higher this year and is now around 3% — is an area to pay particular attention to, he said in an interview.