Published by Global Banking & Finance Review®
Posted on May 23, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on GoogleThe ECB is optimistic about moderating services inflation in 2023, with low wage settlements expected to aid in reaching a 2% price growth target.
FRANKFURT (Reuters) -The European Central Bank is confident that stubbornly high services inflation will moderate this year, helping it get overall price growth back to the 2% target, ECB chief economist Philip Lane said on Friday.
"We're seeing wage contracts having actually quite low settlements for this year, even lower for next year," Lane told a lecture. "So we are confident that service inflation will come back."
Still, he warned that shocks have become the norm in recent years and already this year there have been large movements in exchange rates and energy prices, partly because of major changes in the global trading system.
(Reporting by Balazs Koranyi; Editing by Aidan Lewis)
The European Central Bank is confident that services inflation will moderate this year, which will help achieve the overall price growth target of 2%.
Lane mentioned that wage contracts are seeing quite low settlements for this year and even lower for the next year, indicating a positive outlook for service inflation.
Lane warned that shocks have become the norm in recent years, with significant movements in exchange rates and energy prices already observed this year.
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