World Economy

ECB Rate Hikes Insufficient to Combat Inflation Surge, Giorgetti Warns

Interest-rate increases by the European Central Bank are failing to curb inflation across the euro zone, Italian Finance Minister Giancarlo Giorgetti said. The criticism underscores growing concern that monetary tightening alone cannot address price pressures stemming from energy costs and supply disruptions. ECB President Christine Lagarde acknowledged that energy-price spikes operate outside the scope of traditional rate adjustments, complicating the central bank's inflation-fighting toolkit. Meanwhile, inflation expectations among euro-area households rose in August, signaling consumer concern over sustained price growth. The debate reflects broader challenges facing central banks worldwide as they reassess rate strategies. Poland's monetary authorities flagged potential tightening ahead if energy costs accelerate, indicating policymakers across Europe remain prepared to act despite questions about rate effectiveness.