High oil and gas prices may keep inflation in the eurozone elevated for longer, and it will likely approach the 2% target only in mid-2027. European Central Bank chief economist Philip Lane told a Swiss publication, OilPrice reports, citing Reuters. According to Lane, a second wave of rising energy prices could make inflation higher and more persistent before it starts declining toward the target from mid-2027. He noted that since February, no significant pass-through of higher oil and gas prices to other categories, including electricity, has yet been observed. At the same time, the ECB official suggested that more expensive energy could later this year increase pressure on prices for food, electricity and goods overall.
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