‘Inflation, Inflation, Inflation’ Still Seen as Temporary, Lagarde Says

‘Inflation, Inflation, Inflation’ Still Seen as Temporary, Lagarde Says
Christine Lagarde, head of the European Central Bank (ECB), speaks to the media following a meeting of the ECB Governing Council in Frankfurt, Germany on Oct. 28, 2021. Thomas Lohnes/Getty Images
Reuters
Updated:

FRANKFURT—The European Central Bank still sees a recent rise in euro zone inflation to above its 2 percent target as temporary and expects price pressures to ease next year, ECB President Christine Lagarde said on Thursday.

She acknowledged the decline would take longer than ECB had initially expected but said favourable financing conditions created by its ultra-easy policy were still essential for the euro zone economy to recover from the COVID-19 pandemic.