00:01European Central Bank President Christine Lagarde said that lowering the gap between perceived and actual inflation could significantly benefit the
00:09euro-area economy.
00:11The comments were made as the ECB chief participated in a debate with EU lawmakers at the European Parliament on
00:18Thursday.
00:19Inflation perceptions, as defined by Lagarde, describe people's beliefs about recent price changes.
00:26And while these perceptions generally move along measured inflation, they often read at slightly higher rates.
00:34Lagarde said that the Central Bank pays close attention to households' inflation perceptions, not just to gauge economic activity,
00:41but also to ensure that it's moving at the right trajectory and to continue earning the trust of the people
00:47they serve.
00:48She praised the ECB's efforts at bringing down inflation figures, which peaked at roughly 10.6% in October 2022,
00:57but have now dropped significantly, fluctuating around 2% in the second half of last year.
01:02The latest reading of inflation, measured in January, came in at 1.7%.
01:08She also urged MEPs to take a more active role in voicing voters' concerns and helping explain central bank decisions
01:16to the public.
01:18Lagarde emphasized that economic jargon must be avoided, sticking with simple language,
01:23stressing that it's crucial to not only explain the what, but also the how and why.
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