Europe has succeeded in bringing inflation under control after a surge driven by the end of the Covid-19 pandemic and Russia’s invasion of Ukraine, the head of France’s central bank said.

Euro-area inflation eased more than expected, dipping below the European Central Bank’s 2% target and supporting the case for interest rates to be lowered further.

The outcome of the global trade war could meaningfully alter the euro zone's inflation path, the European Central Bank said on Thursday as it outlined several scenarios to its central view.