European Central Bank chief signals more rate hikes ahead with inflation still ‘strong’

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — European Central Bank head Christine Lagarde says inflation pressures are “strong.” She made clear Monday that the central bank will keep raising interest rates to bring down inflation to its goal of 2%. That means there is a ways to go after inflation clocked in at 6.1% in May. Falling energy prices helped, but Lagarde has warned that is only part of the story but “there is no clear evidence that underlying inflation has peaked.” She stressed the burden that inflation puts on ordinary people, particularly those who are low income. Analysts expect the ECB to raise rates again at its meeting June 15.