Lagarde speech: Energy base effect is a large component of inflation

Christine Lagarde, President of the Europen Central Bank (ECB), added to her earlier comments on the monetary policy outlook at the post-meeting press conference:

Key quotes:

• Impact of supply squeeze on inflation to be seen.
• Not seeing much in terms of wage rises.
• Monitoring second round inflation impact.
• Many drivers of inflation are of temporary nature.
• Energy base effect is a large component of inflation.
• Expecting bottlenecks to be circumvented in first half of 2022.

About ECB President Lagarde

The European Central Bank's President Christine Lagarde, born in 1956 in France, has formerly served as Managing Director of the International Monetary Fund, and minister of finance in France. She began her eight-year term at the helm of the ECB in November 2019. As part of her job in the Governing Council, Lagarde holds press conferences in detailing how the ECB observes the current and future state of the European economy. Her comments may positively or negatively the euro's trend in the short-term. Usually, a hawkish outlook boosts the euro (bullish), while a dovish one weighs on the common currency (bearish).