The ECB has noted its interest rates of 2.5 percentage points since July to try to stem the rise in prices.
mo12345lemonde with AFP
The president of the European Central Bank (ECB) said that “inflation, whatever the way it is considered, is far too high”, during a debate, Thursday, January 19, in Davos. “We will keep the course until we have passed into restrictive territory for long enough to be able to bring inflation to 2 % in due time,” said Christine Lagarde.
“News have become much more positive in recent weeks” – price increases have slowed down after the peak of more than 10 % in October -, making the current year “will not be brilliant but much better than What we feared, “added the president of the ECB.
The ECB has noted its interest rates of 2.5 percentage points since July, an increase in unprecedented speed, and plans to maintain this restrictive CAP in the next months to try to lower inflation sustainably .
Germany seems to resist better
Labor markets, in Europe in particular, “have never been so dynamic” with a number of unemployed “at the lowest compared to what we have had in the past twenty years,” said the French banker.
M Lagarde notably referred to Germany, the first economy in Europe, which should escape the recession in 2023, despite the still tense situation in the face of the energy crisis, according to Chancellor Olaf Scholz’s statements in an interview Tuesday in Bloomberg.
Struck by inflation which adds the production costs of the industry, engine of its economy, Germany seems to be better than expected thanks to robust consumption and substantial public aid.
The European Commission provides for its part a contraction of the gross domestic product (GDP) for the euro zone as for the European Union in the last quarter of 2022 and during the first three months of 2023, before a rebound on the rest of The year.