Inflation could stabilise around ECB’s 2% target

While the central bank currently predicts that price growth will fall below that threshold in 2023 and 2024, Lane (pic) told Lithuania’s Verslo Zinios in an interview that “it’s also possible that we may enter a world where inflation stabilises around 2%” because some of the headwinds that depressed prices before the pandemic won’t return.

FRANKFURT: Inflation in the eurozone could stabilise around the European Central Bank’s (ECB) 2% target after the Covid-19 pandemic, paving the way for an exit from ultra-loose monetary policy, chief economist Philip Lane said.

While the central bank currently predicts that price growth will fall below that threshold in 2023 and 2024, Lane told Lithuania’s Verslo Zinios in an interview that “it’s also possible that we may enter a world where inflation stabilises around 2%” because some of the headwinds that depressed prices before the pandemic won’t return.