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ECB warns eurozone inflation may stay high until 2027

ECB warns eurozone inflation may stay high until 2027

The Chief Economist of the European Central Bank, Philip Lane, stated that inflation in the Eurozone could remain above the bank's 2% target until 2027, despite stabilization in the Middle East, with forecasts suggesting it will stay significantly above the target during the first half of that year. This comes after the bank's decision to raise interest rates in June to address rising energy prices, while the market expects at least one more increase before the end of the year, despite recent declines in energy prices. Lane also indicated that forecasts show a likelihood of inflation remaining above 3% until the end of 2026, and that uncertainty remains high with risks that could push inflation upward.

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