European Central Bank President Lagarde said that long-term inflation expectations still broadly align with the target.

European Central Bank President Lagarde said that despite the deepening impact of the Iran war, long-term inflation expectations still broadly align with the 2% target. Speaking to reporters after a Eurozone finance ministers' meeting in Nicosia, Cyprus, she said, "Although the energy crisis is pushing up inflation and dragging down the economy, long-term inflation expectations remain well anchored overall." She added, "The impact of this war on medium-term inflation and economic activity will depend on the intensity and duration of energy price shocks, as well as the scale of their indirect transmission effects."