Statement on Inflation and Energy Prices from the European Central Bank

European Central Bank Chief Economist Philip Lane stated that the second wave of energy prices will keep Eurozone inflation high for a longer period, and inflation is expected to decline toward the target starting from mid-2027.

Warning on the Second Wave of Energy Prices

European Central Bank Chief Economist Philip Lane evaluated new developments in energy markets in an interview with the newspaper Le Temps. Lane stated that they are currently witnessing a second price increase not only in oil but also in gas.

Date for Inflation to Decline to Target

Stating that a second wave of energy price increases makes inflation higher and more persistent, Lane expressed that inflation is expected to decline in line with the ECB's target starting from mid-2027.

Interest Rate Steps and Expectations

While ECB officials implemented their second interest rate hike this month after the war in Iran increased energy costs, a new 25 basis point interest rate hike in October remains among the possibilities. Eurozone inflation, on the other hand, is expected to rise to approximately 4 percent in the coming months.