European Central President Christine Lagarde said on Sunday that she does not see inflation returning to normal levels in the near future, although signs are emerging.
Lagarde’s comments came to Spanish media group Fucento, as the European Central Bank prepares to raise interest rates by 50 basis points later this month.
Inflation in the eurozone has recorded record levels since the rise began at the end of 2021, reaching its peak in October 2022 at 10.6 percent, while in February it reached 8.5 percent.
Lagarde said that core inflation “excluding food and fuel prices” in the eurozone “may remain high for a period of time, even if the overall inflation rate declines.”
And she added, “It is important to continue taking the necessary steps in terms of monetary policy, to confront high inflation, and move it towards the target levels of 2 percent.”
A number of policymakers have recently warned that the ECB’s rate hike should continue until core inflation begins to decline towards its target rate of 2 percent.
At the recent monetary policy meeting of the ECB’s Governing Council, he made it clear that he would continue his course of raising interest rates substantially and at a steady pace to ensure a timely return of inflation to its target.
