European Central Bank (ECB) President Christine Lagarde said on Thursday in the opening remarks of her post-meeting press conference that inflationary pressures have broadened and remain undesirably high, which is a major challenge, reported Reuters. Moreover, price pressures are becoming more widespread across sectors, she added. 

Near-term economic activity is to be dampened by high energy costs, she noted, noting that the war in Ukraine and recent lockdowns in China have made supply chain snags worse. Wage growth has started to pick up, Lagarde continued, and the initial signs of inflation expectations above target warrant monitoring. The war in Ukraine is a big downside risk to economic growth, while risks to inflation are primarily tilted towards the upside.