ECB's Schnabel asks if inflation is back in closely watched speech

Key Facts

At a time when policymakers are reassessing the global inflation path, ECB Executive Board member Isabel Schnabel delivered a speech titled 'Is inflation back?' on June 27, 2026, according to a bank statement. The remarks come amid persistent price pressures in the eurozone, with analysts divided on how close the ECB is to its 2% target. Schnabel did not detail future policy but raised questions about the need for further tightening.

The speech follows Canadian inflation data showing a sharp acceleration, with the CPI year-on-year reaching 3.2% in May, above the 3% forecast, per market data. Eurozone PMIs for June slipped in both services and manufacturing, heightening uncertainty about economic recovery. Other ECB officials, including President Christine Lagarde, also spoke recently (June 22), signaling coordinated messaging.

Investors are now watching for any policy signals from the ECB ahead of its July meeting. Any hint of extended tightening could support the euro, while a dovish tone may weigh on the single currency.