Inflation in the Eurozone will decrease gradually over the year as its main drivers, such as rising energy prices and supply bottlenecks, are anticipated to ease, according to European Central Bank (ECB) president Christine Lagarde.

"This will gradually stabilise and ease throughout the course of 2022," she said.

When asked about her policy to combat price pressures, Lagarde reiterated that the ECB did not need to act as boldly as the US Federal Reserve due to being in a different economic situation.

ECB's Lagarde Hints at Shift in Eurozone Inflation Target

"The economic recovery cycle in the US is ahead of the economic recovery cycle in Europe. As a result, we have every reason not to act as quickly and brutally as one might expect the Fed to" she said, adding that inflation in the US was also higher.

"But we have started to react, and we are absolutely ready to respond with monetary policy measures if the statistics, data, and facts require it," she said.

In the interview, Lagarde also discussed recent trends in Eurozone yields, noting that Germany's 10-year Bund, widely regarded as the major benchmark, had risen above 0% for the first time since 2019.

"If the yields climb again, it shows that the economy's fundamentals are improving," Lagarde said.