FRANKFURT: Europe's inflation upswing is still seen as temporary and there are no signs yet that the recent surge is becoming embedded in wages, European Central Bank President Christine Lagarde said on Thursday, repeating the bank's recent message on prices.

"We continue to view this upswing as being largely driven by temporary factors," she told the IMF's International Monetary and Financial Committee. "The impact of these factors should fade out of annual rates of price changes in the course of next year, dampening annual inflation."

"So far, there is no evidence of significant second-round effects through wages and inflation expectations in the euro area remain anchored, but we continue to monitor risks to the inflation outlook carefully," she added.

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Euro zone inflation is expected to hit 4% before the end of the year, twice the ECB's target and a growing number of economists see prices remaining above target throughout 2022.