TELETRADER News
2/2, 3:37 PM
(Source: TeleTrader)
Lagarde: Disinflationary process not already at play
European Central Bank (ECB) President Christine Lagarde said on Thursday that, while a large portion of inflation was provoked by a "supply shock," especially the gas prices' effect on electricity cost, core inflation proved to severely impact the overall economic outcome.
Lagarde remarked that core inflation, standing at 5.2%, the highest of all time in the EU, continues to create underlying pressure on the overall score. "I would certainly not say that the disinflationary process ... is already in play," she stressed.
The ECB president continued to note that the effects of China's reopening on inflation in the block are being assessed and will further be discussed at the next ECB meeting in March.