Europe, US have different levels of inflation, state of demand
(MENAFN) On Friday, European Central Bank President Christine Lagarde stated that inflation between European nations is far from reaching the same levels of the US.
The European inflation reached a fresh record high of 5 percent in December 2021, greatly because of power costs in Europe. Lagarde protected the ECB’s policy, saying that Europe and United States did not have the same “state of excessive demand,” while participating at a virtual conference at the World Economic Forum’s Davos Agenda.
The American demand is presently 30 percent more than the levels preceding the pandemic, she reported, while the Eurozone is “just about at pre-pandemic levels.”
She clarified to the CNBC-moderated event, “When I look at the labor market we are not experiencing anything like The Great Resignation, and our employment participation numbers are getting very close to the pre-pandemic level,” adding “so I think those two factors, if you look at them carefully, are clearly indicating that we’re not moving at the same speed, and we’re unlikely to experience the same kind of inflation increases that the U.S. market has faced.”
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