( ) -q-20- UNDATED (Correspondent Jeremy House) “starting to wane.” European Central Bank President Christine Lagarde is warning that inflation is holding its grip on the economy. [CutID: <Cuts> EUROPE-INTEREST-RATES-house-q-TUEam.mp3 Time: 20s Title: EUROPE-INTEREST-RATES-house-q-TUEam Out-cue: starting to wane] TAG: Correspondent Jeremy House reporting. With unemployment low, workers are demanding higher wages to make up for […]
Audio
A stark warning from Christine LaGarde on inflation
( ) -q-20- UNDATED (Correspondent Jeremy House) “starting to wane.”
European Central Bank President Christine Lagarde is warning that inflation is holding its grip on the economy.
[CutID: <Cuts> EUROPE-INTEREST-RATES-house-q-TUEam.mp3
Time: 20s
Title: EUROPE-INTEREST-RATES-house-q-TUEam
Out-cue: starting to wane]
TAG: Correspondent Jeremy House reporting. With unemployment low, workers are demanding higher wages to make up for lost purchasing power. That threatens to keep pushing up inflation in a wage-price spiral that the bank must prevent.
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VERBATIM: Lagarde says the bank intends to raise rates high enough to “break this persistence” and that they will stay high for as long as needed. Lagarde acknowledged that the inflation rate has fallen thanks to lower energy prices. Businesses initially passed on their rising costs by charging customers higher prices, a phase that’s starting to wane.