European Central Bank President Christine Lagarde said that Eurozone inflation has not yet generated significant second-round effects, meaning there is no clear evidence that higher energy prices are feeding into wages and becoming embedded in broader price pressures, Reuters reported.
Inflation in the euro zone has already risen above 3% and could approach 4% by the end of the year, according to the outlook cited in the discussion, putting price growth at roughly twice the ECB's 2% target. The increase has fuelled market expectations of as many as four additional interest-rate hikes over the coming year, following two rate increases during the summer, Reuters reported.
