European Central Bank President Christine Lagarde says inflation will fall gradually in 2022.
“Inflation will fall ‘less’ than predicted the previous year, but will eventually decline,” Lagarde said in an interview.
Lagarde stated that energy prices will not rise forever and supply chain problems will be resolved and the decrease in inflation will continue in 2023 and 2024.
In her speech, Lagarde referred to the Fed and commented, “We have reasons not to react as quickly as the Fed did. Inflation is higher in the US.”
Lagarde noted that about half of inflation is energy prices. He also stated that climate and geopolitics, especially Russia’s being an important oil producer, also played a role in price increases.
“We are prepared to respond with monetary policy if neccesery” Lagarde said.