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Inflation is stronger than expected in the euro zone, ie 5.1% in January, indicated Christine Lagarde following the meeting of the Board of Governors in Frankfurt. The situation has changed compared to the December forecast, observed the President of the ECB.
If the boss of the European Central Bank (ECB) refuses to speak openly regarding diplomatic tensions between Russia and the West around theUkraine and NATO, the allusion to this crisis is nevertheless clear:
« While the uncertainties linked to the pandemic have somewhat faded, geopolitical tensions have on the other hand increased, said Christine Lagarde. These tensions can have an effect on soaring energy prices. Which in turn might have an impact on household consumption, as well as investment. »
Rates and strategy unchanged
In the crosshairs of the ECB, the evolution of the prices of Russian gas imported into Europe. Less gas means a further rise in prices:
« Inflation is expected to remain high in the short term, with energy prices remaining the main reason for this price spike, she indicates. Those of food products were driven by the seasonality of certain products, by the costs of transport and fertilizers. »
The ECB is not changing anything in its policy for the moment, and is still counting on an ebb in inflation in 2022, but no longer denies a possible rise in its interest rates as of next March.
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