Lagarde, Christine – Page 2

European Central Bank Raises Rates Again, but Only a Quarter Point

The bank said “underlying price pressures remain strong” in the eurozone, where the annual inflation rate reached 7 percent last month.

Declines in overall inflation rates may bring comfort to consumers, but central bankers are still wary of drivers of persistently high prices.

The rate of price increases in countries using the euro slowed to 9.2 percent in December, down from 10.1 percent a month earlier.

But the bank warned that interest rates would “still have to rise significantly” to tame inflation.

Consumer prices rose at an annual rate of 10 percent in November, down from 10.6 percent a month earlier, the first decline in 18 months.