its president European Central Bank believes that in order to defeat inflationary pressurebecause they remain stable. “We have very high inflation compared to our target and this has been going on for quite some time,” she said. Christine Lagarde at an event Thursday in Paris, according to Bloomberg. She argued that ECB officials have already embarked on a significant tightening of monetary policy as they try to bring inflation back to the target level of 2%, while it remains almost three times higher than this figure. “We still have a lot to do,” said Christine Lagarde. “The length of the path will depend on a number of factors, not least the impact on credit of the financial turmoil that we have seen,” he added. According to Bloomberg, Ms. Lagarde’s statements are in full agreement with the statements of the ECB representatives, who say that historically the most aggressive tightening of the central bank’s monetary policy is coming to an end.

However, another increase is expected at the next ECB meeting in two weeks, and many expect interest rates to rise by either 25 basis points or 50 in the near future.

The length of the path will depend on several factors, notes Christine Lagarde.

Meanwhile, according to HSBC, the good news is that inflation has clearly hit a ‘ceiling’ after data showed euro zone inflation fell to 6.9% in March from 8.5% in February. However, the investment house believes that rising food prices show no signs of slowing down, while general inflationary pressures are expected to resume in the summer. Looking at March data, HSBC finds that energy prices have entered a deflationary phase (-0.9% y/y from +13.7%). However, core inflation strengthened by 0.1 percentage point to 5.7%, while food inflation remains on an upward trajectory.

The conclusion of the House of Representatives is that inflation has clearly overcome its highs. Further cuts expected in the coming months energy prices and some of the cost challenges faced by businesses are beginning to ease.