Lagarde says eurozone faces slower growth and higher inflation

European Central Bank President Christine Lagarde said in a speech in Nicosia that the euro zone faces slower growth and higher inflation at a time when the war in Ukraine sap confidence and push up energy prices. Lagarde added that food and energy prices in the eurozone should stop rising, which would help the eurozone avoid a combination of stagnant growth and high inflation.

"In the short term, we will face higher inflation and slower growth the longer the war continues, as the economic costs increase and the more likely we will end up in more negative scenarios," Lagarde said, stressing that households are already pessimistic and growth is reduced while business investment is also likely to be affected.