The European Central Bank has fulfilled its inflation goal but volatility in foreign-exchange and commodities markets means the outlook for prices is murky, according to Governing Council member Gediminas Simkus.
The rapid strengthening of the euro against the dollar and moves in energy prices following tensions in the Middle East could cause inflation to deviate again from the 2% target, the Lithuanian central-bank chief said Monday in an interview. The risk of undershooting is greater than overshooting, he said.