ECB's Lagarde: Euro-Area Inflation Risks Primarily to the Upside

The video discusses the economic risks posed by the Ukraine conflict, persistent high energy and food costs, and potential global economic downturns affecting the euro area. It highlights inflation risks, both in the short and medium term, due to pipeline pressures and domestic factors like inflation expectations and wage rises. The video also considers factors that could reduce price pressures, such as declining energy costs and weakening demand, before introducing financial and monetary conditions.

What are the significant risks to the economy mentioned in the text?

What is the expected impact of a weakening world economy on the euro area?

How might energy and food costs impact inflation in the near term?

What domestic factors could contribute to inflation risks over the medium term?

What could potentially lower price pressures according to the text?