Lagarde: Inflation Risks Rise Amid Iran Conflict

ECB President Christine Lagarde said inflation risks in the euro area are tilted upward due to the Iran conflict.
She noted March CPI rose to 2.6% above the 2% target and could peak at 4.2% in an adverse scenario.
Lagarde said the ECB will monitor the war’s impact on energy prices and is unlikely to change policy at this month’s meeting.
She emphasized the need to reduce Europe’s dependence on fossil fuels amid the broader geopolitical tensions.