Finance
ECB still needs to see slowdown in non-energy inflation, chief economist says
Published by Global Banking and Finance Review
Posted on November 26, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 26, 2025
1 min readLast updated: January 20, 2026
ECB's Philip Lane highlights the need for a slowdown in non-energy inflation to ensure stable price growth at the 2% target.
FRANKFURT (Reuters) -The European Central Bank still needs to see a slowdown in non-energy inflation to be confident that overall price growth will hold at its 2% target, ECB chief economist Philip Lane said on Wednesday.
Inflation has been hovering around target for most of this year but non-energy inflation is still well above 2% and energy price deflation has pulled the overall figure down.
"So, for the sustainability of inflation at 2%, we do need to see more deceleration in non-energy inflation," Lane told a financial event in Paris. "We're confident that's going to happen because everything we look at tells us wage dynamics are set to decelerate further."
(Reporting by Balazs Koranyi; editing by Mark Heinrich)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone.
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve economic objectives.
Non-energy inflation measures the increase in prices of goods and services excluding energy prices, providing insight into underlying inflation trends.
Wage dynamics refer to the changes in wage levels and their impact on inflation and economic growth.
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