FRANKFURT, Feb 26 (Reuters) – The European Central Bank expects food inflation, which is crucial for consumers’ perception of price stability, to settle just above its 2% target late this year, ECB President Christine Lagarde said on Thursday.

“Looking forward, we expect it to continue to decline and stabilise somewhat above 2% as of late 2026,” Lagarde told a committee of the European Parliament.

Lagarde repeated the ECB’s expectation that headline inflation will converge to its 2% goal over the medium term as wage growth eases and the economy hums along despite a challenging trade environment.

(Reporting by Francesco Canepa; editing by Balazs Koranyi)