Euro Zone

Philip Lane says there’s still momentum in euro zone inflation, but disinflation is coming

The European Central Bank has said it still sees “significant upside risks” to the inflation outlook, which currently envisages the 2 per cent goal being met in the second half of 2025

Philip Lane: “There’s still a lot of momentum in inflation, but later this year and ongoing a lot of this inflation is supposed to reverse.” Picture: Getty

Inflation in the euro zone still has “a lot of momentum,” though it is moderating, according to Philip Lane, the European Central Bank’s Chief Economist.

Price gains have eased from their double-digit peak and underlying pressures abated in April for the first time in 10 months, allowing the ECB last week to slow the pace of its unprecedented spell of interest-rate increases.

“There’s still a lot of momentum in inflation, but later this year and ...