The latest energy-price shock could last longer than the European Central Bank expected earlier this year and keep euro-zone inflation higher for longer, ECB Chief Economist Philip Lane said in comments reported on September 22.
Lane told Swiss newspaper Le Temps that renewed geopolitical risks had pushed oil and gas prices higher and that this second wave of energy increases was likely to create more persistent inflation.
He said inflation could begin moving back toward the ECB's target from around the middle of 2027.
Lane said the ECB had so far seen limited spillovers into services inflation, which he described as encouraging. However, he warned that higher energy costs could put upward pressure on food, electricity and broader goods prices.
The comments describe Lane's current economic assessment rather than a new formal ECB policy decision.
The outlook remains dependent on energy prices, geopolitical developments and the extent to which higher costs spread into wages and other parts of the economy.