FRANKFURT (Reuters) – The European Central Bank is seeing some progress in its efforts to push down underlying inflation but this is not yet enough, ECB chief economist Philip Lane told a conference in Riga on Wednesday.
Lane said he does not take a lot of comfort from the recent rapid fall in overall inflation because this is largely driven by the reversal of big energy price increases from a year earlier.
This rapid decline that lowered the headline rate to 2.9% last month is likely over for now and price growth will be in the “high twos or low threes” in 2024 before a drop back to the 2% target in 2025, Lane added.
(Reporting by Balazs Koranyi; Editing by Andrew Heavens)
