Inflation in the euro area will remain high in the coming quarters amid rising energy prices, warns European Central Bank President Christine Lagarde. In an interview with the Japanese daily Yomiuri Shimbun, conducted on November 4 and published on November 7, she said the ECB currently sees no second-round effects beyond those included in its projections. The duration of the energy shock remains crucial for interest-rate decisions, which the institution will take on a data-dependent, meeting-by-meeting basis. 1.Eurostat’s flash estimate indicates annual inflation of 4% in the euro area in October 2026, up from 3.8% in September. Energy prices rose 20.8% year on year, while core inflation remained at 2.5%. 2.
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