2023-09-06 08:00:44
Philip Lane, chief economist of the European Central Bank (ECB), has warned of possible “bumps” in the moderation of inflation energy and food, although it has welcomed its containment in terms of goods and services.
Lane has warned in an interview with ‘The Currency’ of “some potholes” around the inflation of energy and food due to the lifting of aid and subsidies for these products by the states.
However, the sharp price increases of a year ago “will disappear from the data this fall.” Likewise, Lane has forecast declines in core inflation over the same period.
The manager also “has welcomed” the drop in inflation of goods and services, but has been cautious. “A month of data is only part of the information: we need it to continue,” he summarized.
“Inflation of 10% does not collapse to 2% very quickly (…), but it has already been cut in half, from 10% to 5%, and further progress is expected this year,” Lane said, a process that has described as “multi-year”.
However, he has stressed that inflation is “temporary” and that, although it will not disappear “from one day to the next”, it should not be assumed that it will crystallize in long-term projections either.
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