Burst of rising prices tests European Central Bank

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank is facing the highest inflation in more than a decade and slowing business activity as it decides on monetary policy for the 19 countries using the euro. The bank’s governing council meets Thursday with no changes expected in interest rates or stimulus programs aimed at getting the economy through the COVID-19 pandemic. But markets will want to hear what President Christine Lagarde has to say about the recent burst of inflation. So far, she views the higher prices as temporary. The bank is pumping 1.85 trillion euros into the economy through at least March.