European Central Bank president Christine Lagarde said the current inflation shock facing the euro area will last longer than policymakers had anticipated, pointing to the ongoing conflict in the Middle East as the primary driver of continued price pressure. "The current shock is longer lasting," Lagarde told regional newspaper Ouest-France in an interview published Saturday. She said the Iran war is continuing to disrupt energy markets, adding that volatility and pressure on energy prices are likely to persist even as higher costs raise the risk of slower growth. The remarks follow the ECB's decision this week to ... ( full story )
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