A high-ranking policymaker at the European Central Bank said on February 21, 2026, that the rise in low-cost imports from China was an important factor in the fall in eurozone inflation below expectations. Lower import prices have been an important factor in the reduction in overall inflationary pressures in the region, according to ECB policymaker Fabio Panetta.
Inflation in the eurozone has fallen to about 1.7 percent in January, which is below the ECB's target of 2 percent. Panetta said that lower import prices have helped to reduce costs for businesses and consumers, leading to a slowdown in price increases. This is welcome news after a long period of high inflation in the region.
However, Panetta said that this trend does not necessarily affect the medium-term inflation outlook. He said that policymakers need to continue to monitor external factors such as exchange rate movements, global trade patterns, and supply chain developments. These factors could affect price stability in the coming months.
This is happening as the ECB is set to reassess its economic growth and inflation forecasts. Policymakers are trying to carefully weigh the impact of global import trends against risks in the energy market and the overall economy in Europe.
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