Business · Economy · 22 hrs ago
Lagarde says euro-area inflation will stay high in coming quarters
ECB President Christine Lagarde says inflation will stay high in the coming quarters.
She told Japan’s Yomiuri Shimbun that high energy costs are keeping pressure on prices.
The longer prices stay high, she said, the greater the risk to the ECB’s medium-term inflation goal.
So far, the bank has not seen second-round effects—such as higher wages feeding into prices—worse than expected.
Lagarde has not confirmed a December rate increase, though some policymakers see another rise as likely.
The ECB will examine incoming data before deciding what to do with interest rates next month.
ECB President Christine Lagarde said inflation is likely to remain high in coming quarters, putting the bank’s medium-term target at greater risk.
She said higher prices that persist for longer increase that risk.
Lagarde did not commit to another interest-rate increase at the ECB’s December meeting.
She said the bank had not seen second-round inflation effects beyond its forecasts so far.
Lagarde also said she would not stay silent if a French presidential candidate called for public debt to be cancelled.
- Who
- Christine Lagarde, president of the European Central Bank.
- What
- She warned that inflation is likely to remain high and increase risks to the ECB’s medium-term target.
- When
- In an interview published on Saturday, November 7, 2026.
- Where
- In an interview with Japan’s Yomiuri Shimbun.
- Why
- Energy costs are keeping inflation high; the sources say higher prices lasting longer increase risks to the ECB’s target.
This story does not have two clearly opposing sides.
Yomiuri Shimbun published its interview with Lagarde, in which she warned that inflation would remain high in coming quarters.
The ECB is due to decide on interest rates; Lagarde said she could not say that a rate increase would definitely happen.
Lagarde is expected to leave her ECB post early, according to Corriere della Sera.
France is due to hold a presidential election, in which Corriere della Sera said Lagarde may take a role.
- Inflation outlook
- Likely to remain high in coming quarters
- ECB target
- 2% inflation target
- October core inflation
- 2.5%, unchanged month to month
- Next rate decision
- December 2026
- French presidential election
- 2027
4 sources
What people are saying
We know that inflation figures will continue to remain high in the coming quarters. The higher these figures are and the longer they remain high, the greater the risk to our medium-term target.
I cannot tell you today that we will definitely do this in December.
When I hear one of the candidates, who enjoys relatively high support in the polls, say that public debt should be cancelled, I simply cannot remain silent.