Lagarde Sees Signs of Moderate Increase in Inflation

The video discusses the impact of geopolitical factors, protectionism, and emerging market vulnerabilities on the global economy. It highlights the Euro area's inflation trends, noting a rise in HICP inflation due to higher energy prices. The video also examines inflation expectations, labor market pressures, and the delayed impact of growth momentum on inflation. Finally, it provides a medium-term outlook on inflation, supported by monetary policy, economic expansion, and wage growth.

What has caused the geopolitical factors and vulnerabilities in emerging markets to become less pronounced?

• Stronger labor markets

• Increased protectionism

• Higher energy prices

• Receding uncertainties in international trade

What was the main reason for the increase in Euro area annual HICP inflation in December 2019?

• Decrease in oil prices

• Higher energy price inflation

• Improved labor market conditions

• Increased consumer spending

Based on current futures prices for oil, what is the expected trend for headline inflation in the coming months?

• Unpredictable fluctuations

• Hovering around current levels

• Significant decrease

• Significant increase

What has been the trend in inflation expectations recently?

• They have become unpredictable

• They have decreased significantly

• They have remained stable or slightly increased

• They have increased significantly

What is expected to support medium-term inflation increase?

• Increased protectionism

• Reduced energy prices

• Monetary policy measures and economic expansion

• Decreased labor costs