The reopening of China's economy will increase inflation pressures globally at the same time as it further complicates attempts to model future inflation trends, ECB president Christine Lagarde said at Davos on Friday.

"China is waking up again," she said, "“something that will be positive for China and the rest of the world but will have inflationary pressures," as a result of increases demand for energy and commodities.

Global economies "are moving from defence mode….to competition mode" as they recover from the effects of the Covid-19 pandemic, Lagarde said, but the ECB will have to "stay that course of resilience that we observed in 2022," to return to price stability over the current forecast horizon.