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ECB: Eurozone inflation has not yet peaked

ECB: Eurozone inflation has not yet peaked

Eurozone inflation is heading to a record high but has not yet peaked, European Central Bank President Christine Lagarde said, signaling further interest rate hikes.

Consumer prices in the 19-nation euro area rose 10.6% in October, boosted by rising food and energy costs in the wake of Russia's war in Ukraine.

"I would like inflation to have peaked in October, but I'm afraid I wouldn't go that far." I think there is too much uncertainty, particularly in one component which is the pass-through of high energy costs at the wholesale level to the retail level, to assume that inflation has actually peaked. It would surprise me," Lagarde told European lawmakers in Brussels.

The ECB has moved to tame inflation with a series of rate hikes, raising key interest rates by two percentage points since July.

Lagarde said the ECB was moving "at the fastest pace ever" and that more hikes would be needed to bring inflation down to the ECB's 2% target.

"We still have a way to go and we're not done with inflation, so, yes, we will continue to raise interest rates," Lagarde said.

Source: Euroactiv

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