Lagarde highlights emerging secondary inflation pressures, signaling continued scrutiny of services sector data.
European Central Bank President Christine Lagarde indicated the bank has begun observing second-round inflation effects, suggesting persistent price pressures beyond initial shocks. The remarks underscore heightened vigilance over services sector trends, a key driver of core inflation.
The ECB’s focus on secondary effects follows recent policy meetings where inflation concerns remained elevated despite cooling energy prices. Markets had anticipated a cautious tone, with prior commentary emphasizing data dependency amid mixed economic signals.
The EUR/USD pair climbed 0.40% to 1.1615 following Lagarde’s comments, reflecting investor expectations of prolonged monetary tightening.