European Central Bank President Christine Lagarde has stated that the euro zone economy is not facing stagflation, despite recent reports suggesting rising prices and falling economic growth. Lagarde argued that the term "stagflation" doesn't fit with current conditions like the 1970s, where inflation continued at a steady pace and high unemployment. However, the ECB acknowledged that the risks of inflation and the weak economy have increased, with inflation already exceeding its target and the economy barely grew in Q1. The bank's March projections did not indicate stagnation, despite lower growth granted in '26.