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Inflation in Europe likely to increase, more interest rate hikes likely, warns central bank president

BRUSSELS (AP) — The head of the European Central Bank said Monday she does not believe inflation has peaked after reaching the highest levels on record.

ECB President Christine Lagarde also told European lawmakers that the bank isn’t through raising interest rates to combat those price spikes.

READ MORE: EU forecasts recession this year amid persistent inflation

There is too much uncertainty to know whether inflation, which hit 10.6 percent in October, would come down soon in the 19 countries that use the euro currency, Lagarde said.

When looking at what is driving inflation, “whether it is food and commodities at large, or whether it is energy, we do not see the components or the direction that would lead me to believe that we have reached peak inflation and that it is going to decline in short order,” she said.

That means the central bank will “continue to tame inflation with all the tools that we…

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