European Central Bank chief suggests firms are engaging in ‘greedflation’

The European Central Bank president, Christine Lagarde, said some companies were increasing profits on the back of high inflation. Photograph: Michael Probst/AP

The president of the European Central Bank has suggested companies are taking advantage of high inflation when increasing prices, after the bank raised interest rates by a quarter of a percentage point to tackle the cost of living surge.

Christine Lagarde said wage pressures in the eurozone had strengthened, as workers try to recoup some of the purchasing power they have lost due to inflation, but she hinted some firms were engaging in so-called greedflation.