European Central Bank (ECB) President Christine Lagarde, speaking at the 2021 ECB Central Banking Forum held via video conference, Lagarde stated that the increase in inflation was due to the reopening of economies and the base effect.
"BEFORE THE CORONAVIRUS OUTPUT WILL BE REACHED BY THE END OF THE YEAR"
Pointing out that the Euro Zone economy is recovering rapidly, Lagarde stated that they will reach the levels before the coronavirus epidemic by the end of the year.
"VACCINATION RATE IN EUROPE IS SUCCESSFUL"
Lagarde pointed out that the economic recovery was due to rapid and successful vaccination campaigns, and stated that the vaccination rate in the population over the age of 12 in Europe exceeded 70 percent.
"ONLY SOCIAL DISTANCE AND MASK APPLICATION CONTINUE"
Stating that the restrictions applied due to the epidemic in the Euro Zone have almost completely disappeared, Lagarde explained that only practices such as social distance and mask use continue.
"PRODUCT SALES INCREASED"
Pointing out that the manufacturing and service sectors gained momentum with the opening, Lagarde said that product sales also increased.
"EURO REGION IS ENERGY IMPORTING"
Reminding that the Euro Zone is in an energy-importing position, Lagarde explained that the increase in energy prices was due to natural gas, electricity and oil.
"THE LAST PERIOD INCREASES FROM THE BASE EFFECT"
Recalling that the prices of energy products dropped significantly last year, Lagarde emphasized that the recent increase in energy prices was due to the "base" effect.
Expressing that they expect energy prices to decrease in the first part of 2022, Lagarde said that another source of uncertainty is the repetition of measures and shutdowns with the new epidemic wave.
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