European Central Bank (ECB) President Christine Lagarde said on Wednesday that inflation has been rising predominantly but not exclusively as a result of energy prices. Lagarde added that she’s not seeing any second round effects yet.

Key quotes

Inflation has been rising predominantly but not exclusively as a result of energy prices.

We’re not seeing any second round effects yet.

We cannot wait until they are in full view but we can anticipate, look for hints.

In Europe you see anticipation of wage increases through collective barganing arrangements, we’re following those entry points.

Asked about French debt, the primary and first solution lies in French fiscal policy.

Growth is not brilliant, but 1.1% growth in 2026 is not bad.

Won’t run for French president.

Market reaction 

At the press time, the EUR/USD pair is up 0.06% on the day to trade at 1.1205.