MarketPR
Philip Lane, chief economist at the European Central Bank, stated that soaring oil and gas prices will keep other prices elevated, with eurozone inflation only likely to approach the 2% target rate towards the middle of next year.
Lane told a Swiss daily, as quoted by Reuters, that the current second wave of energy price increases should lead to higher and more persistent inflation before it recedes towards the target starting in mid-2027.
The ECB chief noted that so far, from February until the present, there has not been a spill from oil and gas prices to other prices, notably electricity.
Lane described this lack of immediate transmission as good news but warned that the ongoing energy price increases are likely to push up costs for food, broader energy categories like electricity, and general goods.
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