Eurozone Inflation Set to Rise, but No Signs Yet of Becoming Entrenched, ECB's Lagarde Says

European Central Bank President Christine Lagarde said eurozone inflation is expected to rise further, driven largely by an energy crisis, but she stressed there’s still little sign it is becoming entrenched in broader prices. Speaking on the outlook for inflation dynamics, Lagarde indicated that while energy-related costs may lift headline figures, the evidence so far does not point to those increases spilling over into wider price setting. Her comments frame the ECB’s challenge as balancing the near-term boost from energy pressures against the longer-term question of whether inflation pressures are broadening across the economy.