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- ECB's Lagarde: Inflation likely to remain elevated longer than previously expected, growth subdued in Q1
ECB's Lagarde: Inflation likely to remain elevated longer than previously expected, growth subdued in Q1
European Central Bank President Christine Lagarde said on Thursday that the Eurozone economy continues to recover, with the economy less hurt by the pandemic, though growth will be subdued in Q1 as shortages restrain activity. Thereafter, the economy will pick up strongly over the course of the year and the labour market continues improving. Inflation will remain elevated for longer than previously expected, she added, with rising energy costs hurting incomes.
Additional Remarks:
"Bottlenecks may be starting to ease."
"The peristence of underlying inflation increases uncertain."
"Wage growth remains muted."
"Containment measures are affecting travel and toursim."
"This may still persist for some time."
"Most measures of underlying inflation have risen."
"Risks to the outlook are balanced."
"High energy costs could be a drag on consumption and investment."
"There is upside risk particularly in the near term."
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