Inflation in the eurozone will fall from record levels and the European Central Bank is ready to take any necessary measures to reduce it to the 2% target, ECB President Christine Lagarde said on Friday, according to Reuters.
It is recalled that inflation rose to 5% last month, the highest ever recorded in the eurozone and more than double the ECB’s target, as sparking energy costs and supply chain disruptions pushed up prices on a number of goods and services.
The ECB has long argued that price increases would go away on its own, but Lagarde said the ECB could adjust its policy if needed.
“Our commitment to price stability remains unwavering,” she said in a statement.
“We understand that rising prices are a concern for many people and we take this concern very seriously,” Lagarde said.
“We have the flexibility to respond to a range of conditions,” Lagarde said, adding that the drivers of inflation are in fact a brake on growth.
“Higher energy prices are lowering household incomes and hurting confidence, while disruptions in supply chains are leading to shortages in the manufacturing sector,” he said.