European Central Bank President Christine Lagarde has warned that inflation is expected to stay elevated in the coming months. In an interview with the Japanese newspaper Yomiuri Shimbun, Lagarde emphasized that while second-round effects from inflation have not been worse than anticipated, the persistence of high inflation poses risks to the ECB's medium-term targets.
Lagarde stated, "We know that inflation numbers will remain high in the quarters to come." She highlighted that the longer inflation stays high, the greater the challenge it presents to achieving the ECB's goals. The comments come as policymakers continue to monitor economic indicators closely.
The ECB has been navigating a delicate balance between controlling inflation and supporting economic growth. Lagarde's remarks suggest that the central bank remains cautious about the outlook, even as it assesses the impact of its monetary policies.