German tabloid attacks ECB boss Lagarde as "Madam Inflation"

Germany's best-selling tabloid "Bild" on Saturday sharply criticized the President of the European Central Bank (ECB), Christine Lagarde, accusing her of destroying citizens' incomes and savings by tolerating a rise in inflation.

The article, which ties in with an attack by Bild on Lagarde's predecessor Mario Draghi in 2019, could be a sign of renewed hostility among the German public towards the ECB, which has been skeptical of the bank's ultra-loose policies for a decade.

Two days ago, the bank left its interest rate policy unchanged, despite consumer price growth hitting a 13-year high.

The newspaper dubbed Lagarde "Madam Inflation", accused her of being a high earner who likes to wear luxury fashion, and said she did not seem to care about common people's troubles. "Christine Lagarde is melting pensions, wages and savings," it said.

When asked by Reuters about the article, an ECB spokesman said that Lagarde admitted at its press conference Thursday that inflation was "clearly a concern" for citizens and that policymakers had "thought a lot" before reaching the conclusion that inflation will decline again next year.

In an interview with the German magazine Spiegel, which was also published on Saturday, Lagarde showed understanding for the plight of ordinary Germans and said she had seen the rise in food prices firsthand.

"I do my own shopping and watch the prices develop," said Lagarde. "I see that some everyday things like yogurt, bread or butter are getting more expensive."

The attack by Bild comes a week after the head of the German central bank, Jens Weidmann, an outspoken critic of the ECB's policy, resigned from his post on the grounds that 10 years in office were enough and at the same time warned of inflation risks.

Inflation in the eurozone hit its previous high this month at 4.1%, while inflation in Germany is even higher and is likely to approach 5% by the end of the year.