The President of the ECB, Christine Lagarde, predicts continued inflation in the Eurozone in the coming quarters, and warns that continued price increases could endanger the medium-term target. Inflation in October reached 4%, mainly due to energy prices.
The ECB does not see wage-driven inflation exceeding expectations, but continues to monitor wage agreements and corporate expectations. Rising energy futures and long-term interest rates have further complicated the outlook for inflation and growth.