According to its President Christine Lagarde, the European Central Bank (ECB) must take a broader perspective in future when assessing the inflation outlook.
Lagarde told French magazine Madame Figaro in an interview published on the ECB's website on Thursday that she is confident that the ECB will return to its inflation target of 2 percent.
But the question is when and in what period of time and what the effect will be.
"We can no longer solely rely on the projections that our models provide - they have had to be revised upwards repeatedly over the past two years," said Lagarde.
There are things that the models do not capture, sometimes the unexpected happens, said the head of the central bank.
"So we need to look at traditional indicators while also monitoring empirical data and our expectations in terms of geopolitics, energy price developments and demographics," she added.
That's where judgment comes into play.
"Of course we use the tools at our disposal, the aggregated data and the indicators that our models produce - but that's not enough," she said.
Fueled by skyrocketing energy prices as a result of the Ukraine war, inflation in the euro area recently reached a record level of 8.9 percent.
This is the highest level of inflation since the introduction of the euro.
The ECB initiated a turnaround in interest rates in July due to the ongoing price hike.
With their first interest rate hike in eleven years, they raised the key interest rate significantly by half a percentage point to 0.50 percent.
At its next interest rate meeting on September 8, it could hike rates again sharply.