Lagarde Says Inflation 'Way Too High,' ECB Staying Course

The transcript discusses the high inflation numbers and the importance of analyzing different components of inflation, such as headline and core inflation. It highlights the European Central Bank's (ECB) commitment to reducing inflation to 2% by implementing measures like increasing interest rates by 250 basis points. The ECB plans to maintain these measures until inflation is controlled effectively.

What is the main focus of the media regarding recent inflation numbers?

• The increase in interest rates

• The drop in headline numbers

• The rise in sticky inflation

• The decrease in core inflation

Why is core inflation considered critically important?

• It includes all elements of inflation

• It is the only measure used by the ECB

• It is less volatile than headline inflation

• It reflects short-term price changes

What is the ECB's target inflation rate?

• 2%

• 1%

• 3%

• 4%

How much has the ECB increased interest rates to combat inflation?

• 200 basis points

• 300 basis points

• 150 basis points

• 250 basis points

What is the ECB's strategy to ensure inflation returns to the target level?

• Ignoring core inflation

• Maintaining restrictive policy for a sufficient period

• Reducing interest rates immediately

• Focusing solely on headline inflation