European Central Bank President Christine Lagarde said Monday that the euro area inflation is to remain higher for longer than anticipated, but will moderate in coming months, and it was unlikely that interest rates would be raised next year. "If energy prices keep rising or supply constraints persist, inflation may remain higher for longer than we currently anticipate," Lagarde said in a virtual hearing of economic and monetary affairs committee of the European Parliament. "Overall, we continue to foresee inflation in the medium term remaining below our new symmetric two per cent target," she added.
Policymakers do see wage growth next year potentially rising somewhat more than this year, but they assessed that the risk of second-round effects remains limited, Lagarde said.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.