Food and energy prices in the euro zone should stop rising, which should help the euro zone avoid a combination of stagnant growth and high inflation feared by economists, European Central Bank President Christine Lagarde said on Wednesday.
Inflation in Spain hit 9.8% this month and it expected to have run above 7% in the bloc's largest economy Germany, setting up the euro zone for another record high when bloc-wide data is published on Friday.
"We know you will see higher inflation this year, there is no question about that," Lagarde said. "But we are also seeing some of those factors that fuel inflation today, energy and food, that will stay high. But we don't forecast them - not predict - to continue to move higher and higher."
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