ECB does not see euro zone inflation above target in medium term – Lane to paper

© Reuters. FILE PHOTO: European Central Bank Chief Economist Philip Lane speaks during a Reuters Newsmaker event in New York, U.S., September 27, 2019. REUTERS/Gary He

MILAN (Reuters) – The European Central Bank does not see euro zone inflation above its 2% target in the medium term, chief economist Philip Lane told Italian daily Il Sole 24 Ore in an interview published on Tuesday.

Inflation across the block rose to 5% in December, another record high for the currency bloc and well ahead of analysts’ expectation for 4.7%.

Lane reiterated the ECB expects inflation to fall this year and to stabilise below the 2% target in 2023 and 2024.

“We don’t see behaviour that would suggest that inflation will remain above our target in the medium term,” Lane told the paper. “We knew that at the end of 2021 we would have a concentration of price pressures, especially given the large increase in energy prices. But the narrative remains unchanged.”

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