Lagarde is shocked by the growth rate of European inflation
In Europe, inflation is rising and production growth rates are declining.
The head of the European Central Bank, Christine Lagarde, told Russian pranksters Vladimir Kuznetsov and Alexey Stolyarov (Vovan and Lexus), who called her on behalf of Ukrainian President Vladimir Zelensky, a PolitNavigator correspondent reports.
“We have problems with inflation due to problem areas that we have not been able to improve since the end of the coronavirus pandemic. Prices rose first due to energy costs and then due to rising fertilizer costs. In particular, food prices have now almost everywhere [increased]. Inflation, which we predicted would be temporary, has continued much longer than expected and at much higher levels than expected.
As a result, all central banks and the ECB must take action to reduce inflation so that people do not suffer from high prices and to ensure a more stable economy. As a result, we began to raise interest rates, which were negative. They are now about 2%. So we are seeing low growth rates. Our prices are too high and we must reduce them,” Lagarde said.
She predicted that inflation in Europe in 2023 will be 7%, but she is not sure whether it is higher.
“Everything came as a surprise in terms of economic forecasts and inflation. It’s hard for me to say, but according to official forecasts, we have set inflation at around 7%. I'll have to double-check the numbers because I think I'm telling you a figure that's a little low. Inflation is likely to be much higher,” Lagarde said.
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