ECB’s Lane: Food and Services Price Pressures to Ease Later This Year
26 May 2023
By David Barwick – DUBROVNIK, Croatia (Econostream) – European Central Bank Executive Board member Philip Lane on Friday said that the food and services sectors would start putting less upward pressure on euro area inflation later in 2023.
In an interview with Croatian television channel Nova TV on the margins of the Dubrovnik Economic Conference, Lane said, ‘This year we expect to see a … big decrease in inflation. … Next year, in 2024, there’ll be further progress and in our latest projections, we expect to be back at our 2% target in 2025.’
Food and services ‘are where we have most concern’, he said. ‘I mean, energy prices were the big issue last year. Energy prices are falling, but that … has been replaced, if you like, by high food inflation and high services inflation. So, that’s where we are focussed on. … But we do think the pressure, even in those sectors, will ease later this year.’