Lagarde: Energy prices account for 50% of price increases
European Central Bank (ECB) President Christine Lagarde underscored on Monday that rising energy costs are responsible for almost half of the price rises the region is seeing.
"Roughly one-third of the inflation is associated with the indirect impact of energy prices," stressed Lagarde, adding that comparing prices on a monthly basis, the costs have gone up by 28% driven by the rising energy prices. Furthermore, Lagarde discussed that the activation of the transmission protection instrument (TPI) is to ensure proper transmission of monetary policy to all countries in the euro area.
"The activation of TPI will depend on the severity of the risk, and the success of the operation," stated Lagarde, stressing that the use of the mechanism is not to be used for an "endless period of time." The central bank's president underscored that the use of TPI will consider the "macroeconomic and inflation situation" in the region.