Published by Global Banking & Finance Review®
Posted on March 25, 2026
1 min readLast updated: March 25, 2026
Add as preferred source on GoogleECB Chief Economist Philip Lane indicated that the ECB will closely monitor firms’ price‑hike expectations and wage dynamics for new hires amid conflict‑driven energy price risks, as markets anticipate a temporary “price‑level jump” rather than sustained inflation above target.
FRANKFURT, March 25 (Reuters) - The European Central Bank's chief economist Philip Lane on Wednesday flagged companies' price-hike expectations and wages for new hires as some of the key indicators that the ECB will monitor amid fears of a war-fuelled spike in inflation.
In his presentation at a conference in Frankfurt, Lane also noted that financial markets had priced in a "price-level jump" in the euro zone as a result of higher energy prices, rather than a persistent rise in inflation above the ECB's 2% target.
(Reporting by Francesco Canepa; Editing by Alison Williams)
The ECB is focusing on companies' price-hike expectations and wages for new hires to monitor inflation.
Selling prices and wages are seen as leading indicators of potential future inflation in the euro zone.
Markets have priced in a 'price-level jump' due to higher energy costs, rather than expecting sustained inflation above the ECB's target.
The ECB aims to keep inflation at or below 2% in the euro zone.
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