Lagarde Highlights Euro Zone's Core Inflation Concerns
European Central Bank (ECB) President Christine Lagarde expressed concern that underlying eurozone inflation remains too high. This comes after the headline measure of price gains dropped by the most on record this month.
March Sees All-Time High Core Inflation at 5.7%
Core inflation, which excludes volatile energy and food costs, reached an all-time high of 5.7% in March. In contrast, the main inflation number plunged to 6.9% from 8.5%.
Lagarde Discusses ECB's Efforts to Reach 2% Inflation Target
Speaking to students in Florence, Italy, Lagarde acknowledged that the ECB still has ground to cover to bring inflation back to 2% over the medium term. She noted that the 350 basis points of interest-rate increases since last July are starting to show results.
ECB's Inflation Fight Unaffected by Financial Market Stress
Lagarde reassured listeners that recent financial-market stress would not interfere with the ECB's efforts to combat elevated prices. She also stressed that Deutsche Bank's situation should not be compared to the downfall of Credit Suisse Group AG.
Lagarde Confident in Europe's Financial System Strength
The ECB President stated that Europe's financial system is strong, making a collapse similar to that of Silicon Valley Bank highly unlikely.