Euro zone inflation risks are now tilted to the upside, with European Central Bank President Christine Lagarde warning that price growth could exceed earlier forecasts. The remarks add to growing concern that inflation in the currency bloc may prove stickier than previously anticipated, particularly in services and wage-sensitive sectors.
Lagarde said underlying inflation dynamics remain uneven across the euro area, with certain components showing stronger persistence than expected, according to Reuters. The comments come as policymakers continue to weigh whether recent disinflation trends represent a lasting shift or a temporary pause in price adjustments.
