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Politics
Economics

Draghi Says Europe’s Record Inflation Doesn’t Show Overheating

  • Former ECB chief speaks out just before major decision
  • Lagarde is set to end bond purchases, signal ECB rate hikes
Shoppers in the Alberto Sordi shopping gallery in Rome.

Shoppers in the Alberto Sordi shopping gallery in Rome.

Photographer: Alessandra Benedetti

Italian Premier Mario Draghi said surging inflation in Europe doesn’t reflect excess demand, and there’s still spare capacity to be found in the region’s economy.  

The former European Central Bank president spoke out on the day that officials led by his successor, Christine Lagarde, are set to stop bond purchases and firm up plans for interest-rate increases to stop record consumer-price increases from spiraling out of control.