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European Central Bank (ECB) President Christine Lagarde has warned that inflation across the euro area is expected to remain elevated over the coming quarters, highlighting mounting uncertainty over the economic outlook and the potential implications for price stability. Speaking in an interview with Japan’s Yomiuri Shimbun, Lagarde stressed that the longer inflation remains at elevated levels, the greater the risks to the ECB’s medium-term inflation objective. “We know that inflation rates will remain high over the coming quarters,” Lagarde said, adding that the duration and intensity of these pressures would be critical factors in assessing the risks facing the European economy.
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