Inflation remains “excessively high”, the president of the ECB said. Christine Lagardedespite the fact that consumer prices posted the biggest drop to date in March.

Core inflation, which excludes energy and food costs, accelerated to a record 5.7% in March as consumer prices eased to 6.9% from 8.5%.

The ECB still has “some way to go” to bring inflation to its 2% target over the medium term, Lagarde told students in Florence. However, he stressed that interest rate hikes of 350 nonads since last year in July “are starting to bear fruit.”

Its president ECB reiterated that the recent banking turmoil is not interfering with the battle to tackle high prices and stressed that Deutsche Bank should not be compared to the collapse of Credit Suisse.

He also underlined that the European financial system is strong, which means that a bank collapse similar to that of Silicon Valley Bank is very unlikely.