Lagarde (ECB) affirms that the process to end inflation "is not yet over", but it is on track

He has warned about the impact that an escalation between Israel and Hamas could have on energy prices

MADRID, 25 Oct. (EUROPA PRESS) -

The president of the European Central Bank (ECB), Christine Lagarde, stated this Wednesday that the process of bringing down inflation is not over, but she has expressed confidence that it will return to the 2% target in due time.

"We are not finished," summarized the head of the European broadcasting institute in an interview with the Greek media 'Antenna TV'. In it, Lagarde has reiterated the commitment of the institution that she presides with its medium-term control given that price stability is a "mission" of the ECB.

"We must monitor prices and salaries, as well as profits and so on, to determine where the risks lie," he explained. "But, at the moment, I am sure that we are in the process of bringing inflation back to 2%," she said.

Thus, Lagarde has indicated from Athens, just in the run-up to tomorrow's meeting to maintain or raise interest rates, that those in charge of monetary policy will have to pay "close attention" to the potential risks to financial stability, including a possible escalation in the war waged between Israel and Hamas since last October 7.

In this sense, the former French Minister of Economy has stated on the 'ERT TV' channel that the impact that instability in the Middle East has on energy prices should not be ignored, since this region is an important oil producer and transit area. . This, "directly or indirectly", affects general confidence in the economy.

Lagarde recalled that energy volatility was already the "main driver" of inflation in 2022, with its consequent cost for activity and families, although, in that case, the trigger was the Russian invasion of Ukraine.