ECB’s Lagarde does not see risk of stagflation

BERLIN (Reuters) – The European Central Financial institution doesn’t count on the battle in Ukraine to push the euro zone into stagflation even when it does push up inflation as a consequence of greater power costs and push down progress, President Christine Lagarde was quoted as saying on Saturday.

“Incoming knowledge don’t level to a fabric threat of stagflation,” Lagarde mentioned in an interview with Phileleftheros revealed by the ECB on its web site.

Lagarde mentioned progress within the euro space may very well be as little as 2.3% in a extreme state of affairs because of the battle in 2022, nonetheless in all eventualities inflation is predicted to lower and settle at ranges across the financial institution’s 2% goal in 2024.

(Reporting by Emma Thomasson, Modifying by William Maclean)