Italian inflation has risen more than expected, surpassing the European Central Bank's target of 2% for the first time in 18 months. The consumer prices increased by 2.1% compared to the previous year, with energy and food costs being the main contributing factors, as reported by the national statistics institute. While there are differing opinions among ECB officials on the direction of borrowing costs due to factors like US tariffs and increased European defense spending, there is a possibility of further rate cuts in response to inflation concerns. Market expectations suggest additional quarter-point rate cuts and a likelihood of a reduction next month is estimated at 90%. Goldman Sachs Group Inc. economists anticipate three more rate cuts by the ECB this year in response to the impact of Trump's tariffs on economic growth. Despite predictions of a slight decrease in inflation figures for Germany and the euro area, ECB officials emphasize the ongoing battle to maintain price stability. ECB President Christine Lagarde and other officials stress the importance of continued vigilance in achieving the 2% inflation target. Fabio Panetta from Italy also highlights the need to monitor factors that could hinder a return to the desired inflation level.