ECB’s Lagarde keeps door open to higher inflation

Inflation in the euro zone could exceed the European Central Bank’s already raised projections but there are few sings of this already happening, ECB President Christine Lagarde said on Monday.

“While inflation could prove weaker than foreseen if economic activity were to be affected by a renewed tightening of restrictions, there are some factors that could lead to stronger price pressures than are currently expected,” she told lawmakers at the European Parliament.

“But we are seeing limited signs of this risk so far, which means that our baseline scenario continues to foresee inflation remaining below our target over the medium term,” she added.