Economy

CB vs inflation
Lagarde: Households perceive inflation as higher than it actually is

European households perceive inflation as higher than it actually is. This is what ECB President Christine Lagarde says in a speech published on the central bank's website.

Inflation has fallen from a peak of 10.6 percent to now hover around the two percent target, and that the ECB's monetary policy has played a decisive role in the fight against inflation.

The gap between actual and perceived inflation is currently around 1.2 percent. And this has consequences for economic decisions and for trust in institutions, Lagarde notes – "A trust that helps to anchor inflation expectations".

In the speech, the ECB President says that the central bank expects inflation to continue to stabilize around 2 percent in the medium term.

Middle East Crisis Tensions between Iran and the US
Expert: The conflict between the US and Iran threatens world trade

An escalated state of tension between the US and Iran risks disrupting world trade. This is what political science professor Isabell Schierenbeck tells EFN, pointing out that Iran has threatened to close the Strait of Hormuz to make transport more difficult.

– Of course, that would have a very clear impact on the world economy, says Isabell Schierenbeck.

At the same time, there is concern about attacks on ships in the Red Sea by Iran-backed groups, which could further fuel uncertainty about global supply chains and energy prices.
The conflict between the US and Iran – it's about the matter

In February 2026, the US and Iran held indirect talks about Iran's nuclear program in Oman and Geneva, with Oman acting as a mediator.
The talks have taken place at the same time as the US has significantly increased its military presence in the Middle East, including with two aircraft carriers.
The US has demanded that Iran stop enriching uranium, while Iran has demanded sanctions relief and refused to give up uranium enrichment completely.
The parties have agreed on guiding principles for an agreement, but several sources say that the US is considering military action if no agreement is reached.
Tensions have increased further after military exercises, threatening rhetoric and reports that the US is ready for an attack on Iran soon.