ECB, Lagarde on inflation: stronger wage growth, government subsidies against #energy shortages will drive prices back up

“The depreciation of the euro is being reflected in prices.”

Thus Christine Lagarde, in the press conference following the announcement on rates that arrived half an hour earlier, referring to the inflation that remains persistent in the euro area. Inflation also supported by “wage growth”, which is “strengthening”.

Furthermore, Lagarde pointed out, the “subsidies (that the governments of the Eurozone are launching to help consumers cope with the #high bill and #high energy) will bring inflation down for now, but then they will bring it back up”.