PARIS (Reuters) – Inflation will gradually fall in the eurozone over the next year because its major drivers (surging energy prices, supply bottlenecks) are expected to decrease, Christine Lagarde (ECB head) told France Inter radio.

She said, “This will stabilize and ease gradually over the course of 2022.”

Lagarde, when asked to explain her approach to price pressures, stated that she did not believe the ECB needed to take as strong a stand as the U.S. Federal Reserve. This was due to a more challenging economic context.

The U.S. economic cycle is more successful than that of Europe. “There is absolutely no reason for us to react as fast and as harshly as we can think the Fed would,” she explained, noting that inflation in America was even higher.

“But we’ve started to react. We are obviously ready to take monetary policies measures when the facts, data and figures demand,” she stated.

Lagarde spoke out about recent developments in yields within the euro zone. The 10-year Bund of Germany, which is regarded as the benchmark for all other countries, rose to 0%, the highest level since 2019.

Lagarde stated that if yields increase again it means the economic fundamentals are improving.