The war in Ukraine to fuel further increase in prices: the head of the ECB
23:51
The head of the European Central Bank, Christine Lagarde, warns that the "supply shock" caused by the war in Ukraine will further increase prices, and the eurozone economy is entering a "difficult phase" - it is threatened with a decline in growth and confidence.
On Wednesday, the head of the European Central Bank in Cyprus spoke about the impact of the war in Ukraine on rising inflation in Europe.
Financial Times daily described her statement on Wednesday as "so far the bleakest assessment" of how the Russian invasion will hit the bloc economies. Lagarde said Europe is "entering a difficult phase" in the context of soaring energy, food, and industrial commodity prices. She added that the conflict "is starting to undermine trust."
"It is clear that the longer the war lasts, the greater the economic costs will be and the more likely it will be for more adverse scenarios," she said.
She believes higher energy prices have already lowered euro area revenues by 1.2 percent in the fourth quarter of 2021.
(PAP)
