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ECB Policymaker Rehn Warns of Inflation Slowdown Risk
16 Nov
Summary
- ECB Governing Council member Olli Rehn sees inflation slowdown risk
- Factors include low energy prices, stronger euro, and easing wage/services inflation
- Rehn says total inflation could slow excessively relative to 2% target
On November 16, 2025, European Central Bank (ECB) Governing Council member Olli Rehn cautioned that the risk of inflation slowing should not be overlooked. In an interview published by the Finnish newspaper Helsingin Sanomat, Rehn stated that several factors are posing a risk that total inflation could slow excessively relative to the ECB's 2% target.
Rehn pointed to low energy prices, a stronger euro, and easing wage and services inflation as the key drivers behind this risk. He emphasized that these developments could lead to a situation where total inflation declines at a faster pace than desired by policymakers.
The ECB has maintained a 2% inflation target, and Rehn's comments suggest that the central bank may need to closely monitor the evolving price dynamics in the Eurozone to ensure that inflation remains on track to meet this objective.
