Christine Lagarde, President of the European Central Bank
ECB, Lagarde: inflation down but it will take time, drop in energy prices from mid-2022
Prices going down, but it will take some time, more than expected: the warning comes from the president of the European Central Bank Christine Lagarde at the hearing in the European Parliament. The number one of the ECB specified that the duration of bottlenecks in supplies to industry, global value chains, is uncertain and that the risks of "second round" effects ofgeneral increase in wage prices. Medium-term inflation forecasts remain "below our new symmetrical target of 2%".
Consequently, despite the current price hike, "the medium-term outlook remains contained," making "Very unlikely" that rates will be revised upwards in 2022. The Eurotower number one explained that "at a time when purchasing power is already being squeezed by rising energy and fuel bills, an undue tightening of financing conditions is not desirable and would represent an unjustified obstacle. at recovery ".
However, reassures Lagarde, “the current futures prices indicate a significant easing of energy prices in the first half of 2022. As the recovery continues and supply bottlenecks ease, we can expect the pressure on prices for goods and services to normalize. "
On the other hand, the commodity crisis weighs on manufacturing production and weakens Eurozone growth, threatened by both conditional inflation and rising energy prices.
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