ECB's Lagarde: Inflation to Remain Undesirably High for Some Time

The video discusses the current high inflation pressures due to energy and food prices, and the euro's depreciation. It predicts stabilization in energy costs and easing supply bottlenecks, supported by policy normalization. The labor market remains strong with low unemployment and increasing wage growth. Long-term inflation expectations are around 2%, but recent revisions require monitoring.

What are the main factors contributing to the current high inflation rates?

• Increased government spending

• Energy and food prices, and euro depreciation

• High interest rates

• Decreased consumer demand

What is expected to help stabilize energy costs in the future?

• Reduced energy consumption

• Increased energy production

• Policy normalization and easing supply bottlenecks

• Higher taxes on energy

How is the labor market described in the transcript?

• Strong with low unemployment

• Declining with fewer job opportunities

• Weak with high unemployment

• Stable with no changes

What is the current trend in wage growth according to the transcript?

• Rapid increase

• Gradual increase

• No change

• Decrease

What is the current expectation for long-term inflation?

• Above 3%

• Unpredictable

• Below 1%

• Around 2%