FRANKFURT: Euro-area inflation will stay elevated for some time, according to European Central Bank (ECB) President Christine Lagarde. “The current shock is longer-lasting,” she told Ouest-France in an interview. “We expect the volatility and pressure on energy prices to continue, even though the increase in prices also poses a risk of lower growth.” The ECB raised interest rates this week for the second time since the Iran war sent oil and gas prices soaring. Officials expect them to rise further to bring inflation, currently above 3%, back to 2%, people familiar with their discussions told Bloomberg last Thursday.
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