Economic Buzz: ECB President Lagarde says inflation is rising but there are no second-round effects yet

ECB President Lagarde has noted in a latest speech today that inflation is rising but there are no second-round effects yet. Lagarde said inflation has been rising predominantly, though not exclusively, as a result of energy prices. While there is no sign yet of those increases feeding through into broader wages and prices, she said policymakers must anticipate and look for early hints. The ECB is paying particular attention to collective bargaining arrangements, where expectations of future wage increases tend to show up first.

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