Published On: Fri, Sep 24th, 2021
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ECB’s Lagarde Says Many Causes of Inflation Spike Are Temporaryon September 24, 2021 at 12:57 pm

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FRANKFURT—Many of the drivers of a recent spike in euro zone inflation are temporary and due to fade in the next year, European Central Bank President Christine Lagarde said. Euro zone prices have been rebounding faster than expected as the economy reopened after pandemic-induced lockdowns, and several ECB policymakers think inflation will be close to, or even above, the ECB’s target of 2 percent next year. In an interview aired on CNBC on Friday, Lagarde blamed much of the rise on supply disruptions and said inflation should stabilise next year. She was later echoed by Italian ECB policymaker Ignazio Visco. “We think that there will be a return to much more stability in the year to come because many of the causes of higher prices are temporary,” Lagarde said. “When you look at what’s causing it, a lot of it has to do with energy prices.” She added “things will …

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