<h1>ECB President warns inflation becoming unpredictable due to economic shocks and supply disruptions</h1> The European Central Bank President stated that inflation has become more unpredictable due to frequent economic shocks like the pandemic and geopolitical conflicts. Supply disruptions are causing companies to adjust prices more frequently, reflecting structural changes in business operations under heightened uncertainty. The central bank official emphasized that policymakers should consider extreme scenarios alongside baseline predictions and communicate these possibilities to the public. Examples cited include inflation projections during recent conflicts that underestimated actual outcomes, and pandemic-driven consumer spending shifts. The bank reaffirmed its 2% inflation target, currently achieved with May inflation at 1.9%, allowing interest rate cuts from 4% to 2%. Trade uncertainties add further complexity to economic forecasting.