Eurozone inflation at 4.0%... Lagarde to judge December rate hike based on indicators

European Central Bank President Christine Lagarde said on Thursday that energy costs are simultaneously pushing inflation higher and weighing on growth in the euro area, where inflation stands at 4.0%, while framing AI adoption as a separate force that supports investment demand and economic resilience. Speaking at the “New Conversations for the Future” event in Milan, Lagarde indicated that the ECB will judge whether to raise rates in December based on incoming indicators rather than committing to a path now. The remarks matter because they leave the December policy decision data-dependent even with inflation at 4.0%, keeping euro-area rate expectations and the euro sensitive to energy prices and activity data. The ECB published no prepared text, with Investing.com reporting the remarks from the event. Watch December rate pricing, energy costs and AI-related investment signals ahead of the ECB’s next meeting.