European Central Bank: Inflation has not yet peaked

European Central Bank President Christine Lagarde announced on Monday she would be “surprised” if inflation It has already peaked in the Eurozone, which indicates that the current monetary woes will continue.

Price increases peaked in October at 10.6%, and were very high at around 5% excluding energy and food prices.

Boss confirmed European Central Bank During a hearing before the European Parliament he would like to believe that inflation peaked in October, but added that “there is a lot of uncertainty”.

And he stressed that the state of uncertainty is linked in particular to the “repercussions of the high cost of energy on retail prices”.

Faced with rising inflation in the wake of the war in Ukraine, the European Central Bank has raised interest rates by 2% since July, the first time it has done so suddenly in its history.

Rates are expected to be raised again in December at the last meeting of the year, but likely on a smaller scale than the 0.75% hikes in September and October, observers said.

Lagarde believes that inflation will decrease in the long run thanks to the monetary policy adopted and the gradual easing of supply bottlenecks.

“Right now the top economists (within the ECB) see a risk of higher inflation,” he said. Against this backdrop, she added, interest rates “are and will remain the primary tool for fighting inflation.”

In the US, the Federal Reserve started raising interest rates earlier and more aggressively and now believes in a slower pace of hikes interest rates You may soon be an appropriate move.

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