Key facts
- Euro zone inflation has surpassed 3% and may approach 4% by year-end.
- ECB President Christine Lagarde said a measured policy response remains appropriate.
- Lagarde noted no signs of inflation becoming embedded, particularly in wages.
- She attributed higher inflation primarily to surging oil and gas prices.
- Lagarde acknowledged risks are skewed towards higher inflation and high uncertainty.
European Central Bank President Christine Lagarde stated on Monday that a measured policy response from the ECB remains appropriate to quell inflation, which is expected to approach 4% by the end of the year. Speaking to a European Parliament committee, Lagarde noted that while inflation has surpassed 3% and is driven by energy prices stemming from the US-Iran conflict, there are no signs yet that it is becoming embedded in wages.