Economy

Philip Lane ‘confident’ inflation is returning to 2% goal

Irish ECB chief economist said that easing pressure in the service sector was an ‘important step’ in price growth reversal

Philip Lane: “Both the April flash estimate for euro area inflation and the Q1 GDP number that came out improve my confidence that inflation should return to target in a timely manner.” Picture: Fergal Phillips

Philip Lane, the European Central Bank (ECB) chief economist, said recent euro-area data have made him more certain that inflation is returning to the 2 per cent goal, raising the likelihood of a first interest-rate cut in June.

Speaking in an interview with Spanish newspaper El Confidencial, the former governor of the Central Bank of Ireland cited a report on consumer prices last week that showed pressures in the service sector eased for the first ...