---
title: "Lagarde Says Core Inflation Still ‘Significantly’ Too High"
description: "European Central Bank President Christine Lagarde said underlying inflation remains “significantly too high” — even after the headline measure of price gains for the euro zone dropped by the most on record this month."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-03-31-lagarde-says-core-inflation-still-significantly-too-high/"
published: "2023-03-31T18:58:41"
lang: "en-ZA"
word_count: 156
---

# Lagarde Says Core Inflation Still ‘Significantly’ Too High

> European Central Bank President Christine Lagarde said underlying inflation remains “significantly too high” — even after the headline measure of price gains for the euro zone dropped by the most on record this month.

By Bloomberg · Published 31 March 2023, 20:58 SAST

## Key points
- The Eurozone's core inflation hit a record high in March, while the main number plunged. ECB President Christine Lagarde believes the 350 basis points of interest rate increases since last July are beginning to work.
- Core inflation in Eurozone hit an all-time high of 5.7% in March
- ECB President Lagarde says there is still “ground to cover” to reach 2% inflation target
- Financial market stress won't interfere with the fight against elevated prices
- Europe's financial system is strong and unlikely to collapse

## Content

Core inflation, which strips out volatile energy and food costs, accelerated to an [all-time high](https://www.bloomberg.com/news/articles/2023-03-31/euro-area-inflation-sinks-but-record-core-reading-pressures-ecb) of 5.7% in March, while the main number plunged to 6.9% from 8.5%.

The ECB still has “ground to cover” to bring inflation back to 2% over the medium term, Lagarde told students in Florence, Italy, on Friday. Nevertheless, the 350 basis points of interest-rate increases since last July “is beginning to work,” she said.

Lagarde reiterated that the recent financial-market stress won’t interfere with the fight against elevated prices, and said Deutsche Bank shouldn’t be compared to the downfall of of Credit Suisse Group AG.

She said Europe’s financial system is strong, meaning something similar to the collapse of Silicon Valley Bank is very unlikely.

| Read more: |
| --- |
| - [Euro-Area Core Inflation Hits Record, Backing Case for ECB Hikes](https://www.bloomberg.com/news/articles/2023-03-31/euro-area-inflation-sinks-but-record-core-reading-pressures-ecb) - [ECB’s Loss of Credibility Means It Now Can’t Relent, Monti Says](https://www.bloomberg.com/news/articles/2023-03-31/ecb-s-loss-of-credibility-means-it-now-can-t-relent-monti-says) - [Villeroy Says ECB Possibly Has ‘a Little Way to Go’ on Rates](https://www.bloomberg.com/news/articles/2023-03-31/villeroy-says-ecb-may-still-have-a-little-way-to-go-on-rates) |