Lagarde: EU inflation remains too high

On Thursday, European Central Bank President Christine Lagarde said that inflation across all indicators remains too high for now. Policymakers will not relent in their efforts to return price growth to target levels.

The president explained that the bank will adhere to the course of its policy until it moves to the rate where it can return inflation to 2%.

Due to a price growth slowing in the Eurozone, along with declining natural gas costs, some policymakers are considering a small rate hike after the expected half-point move in February.

However, given that the core inflation rate hit a new record in December and the economy is holding up more optimally than expected, many officials are still eager to raise rates. In this case, the most dramatic price spike could be guaranteed to be overcome.