ECB chief economist Philip Lane says a second energy price shock pushes the euro area's return to target inflation out to mid-2027, reversing a consensus that formed just three months ago. August's print held at 3.3%, still well above the ECB's 2% goal.
Philip Lane told Le Temps that markets had wrongly expected energy prices to peak around June after the US-Iran memorandum, delaying a return toward 2% until mid-2027. Source
Philip Lane just moved the goalposts. The European Central Bank (ECB) chief economist told Le Temps on Tuesday that a second wave of oil and gas price increases means euro area inflation will not credibly return to the 2% target until mid-2027. That reverses a market consensus that had formed just three months ago.
