MNI BRIEF: "Not Quite Mission Complete" On Inflation - Lagarde
MNI (LONDON) - The European Central Bank is nearing its target on inflation, but "it’s not quite mission complete yet," ECB President Christine Lagarde said on Wednesday, adding that the Governing Council will make its policy decision next week in line with its data-dependent and meeting-by-meeting approach.
"Inflation is expected to temporarily increase in the fourth quarter of this year, as previous sharp falls in energy prices drop out of the annual rates, before declining to target in the course of next year,” Lagarde told the European Parliament's ECON committee. (See MNI SOURCES: ECB Closer To Dropping "Restrictive" Language )
Inflation rose to 2.3% in November, according to Eurostat, up from 1.7% as recently as September.
The ECB remains unwilling to commit to a pre-set rate path, Lagarde said, noting that the medium-term economic outlook is uncertain, and dominated by downside risks, while geopolitical risks are elevated, with growing threats to international trade,