Lagarde: Price Rises Have Become More Widespread

Lagarde's opening comments continue, moving onto inflation:

• Energy prices were driven higher following the outbreak of the War. They continue to be the main reason for the high rate of inflation. Market based indicators suggest energy prices will stay high in the near term and then moderate to some extent.
• Food prices have risen due to transport and input costs.
• Prices rises have become more widespread. Supply bottlenecks and normalisation of demand continue to put upward pressure on prices. Underlying inflation measures have risen above 2% but it is unknown how persistent this rise will be.
• The labour market continues to improve. However, wage growth remains muted overall. Over time, the return of the economy to full capacity should support faster growth in wages.
• Various measures of inflation expectations from financial markets and survey largely stand at around 2%, initially signs of above target revisions in those measures warrant close monitoring.