ECB’s Villeroy: Downside Inflation Risks at Least Equal Upside

Risks of euro-area inflation easing are at least as significant as those of an acceleration, and the European Central Bank would act if there’s a persistent undershoot of its 2% target, according to Governing Council member Francois Villeroy de Galhau.

The French central-bank chief said a stronger euro and cheaper imports from China could take 0.2 percentage point off consumer-price gains in 2027, and also warned that a greater deceleration in wage growth could exert downward pressure.