ECB's Lagarde admits inflation to last longer and spike higher than originally thought

Christine Lagarde still sees inflation easing next year.

Tightening monetary policy now to rein in inflation could choke off the eurozone's recovery, European Central Bank (ECB) president Christine Lagarde has said, pushing back on calls and market bets for tighter policy.

With inflation already twice its 2% target and likely rising further later this year, the ECB is coming under increased pressure to abandon its ultra-easy monetary policy and tackle price growth that is eroding households' purchasing power.