ZURICH, Sept 22 (Reuters) – An energy shock pushing up oil and gas prices is likely to last longer than the European Central Bank had anticipated in March, with geopolitical risks now looking elevated again, ECB Chief Economist Philip Lane was quoted as saying on Tuesday.
“As a result, we believe this second wave of energy price increases should lead to higher and more persistent inflation, before it recedes towards our target starting in mid-2027,” Lane told Swiss newspaper Le Temps.
Asked whether he saw spillover effects on other prices, such as electricity or services, Lane said:
“So far, from February until now, we haven’t, and that’s the good news. However, the second wave of energy price increases that we’re seeing today is likely to put upward pressure on food prices, energy prices more broadly, including electricity, and goods prices in general. By contrast, pressures on services should remain relatively contained.”
(Writing by Dave GrahamEditing by Ludwig Burger)