Risks to the inflation outlook tilted to the upside in the near-term

In her usual post-ECB monetary policy meeting press conference, ECB President Christine Lagarde said on Thursday that risks to the Eurozone inflation outlook are tilted to the upside in the near term, reported Reuters.

Additional remarks in the opening part of the press conference:

  • The Ukraine war has weighed heavily on confidence.
  • Trade disruptions are leading to new shortages.
  • Surging energy prices are reducing demand and production.
  • The extent of these effects depends on the evolution of the conflict.
  • The recovery of the economy has been boosted by fading of the Covid-19 pandemic.
  • Inflation pressures have intensified across many sectors.
  • Growth will have remained weak in Q1 2022.
  • The ECB expects slow growth in the period ahead.
  • New pandemic measures in Asia are contributing to supply chain issues.
  • A reopening of sectors after the pandemic and the strong labor market will support income.
  • Inflation is mainly being driven by energy.
  • But inflation has become more widespread.
  • The rise in core inflation is uncertain.
  • The labor market is improving further.
  • But wage growth remains muted overall.
  • Initial signs of inflation expectations moving above target warrant monitoring.
  • Risks to the economic outlook are tilted to the downside.
  • Downside risks have increased substantially.


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