Europe
Eurozone inflation jumps to 2.5% as Iran war drives energy costs higher
March data shows the sharpest annual price rise in over a year, forcing the ECB to weigh rate hikes against an economy already strained by expensive energy.
Person
Philip Lane
Chief Economist of the European Central Bank, European Central Bank
What we have reported
- Cautioned governments against broad-based energy subsidies that could fuel inflation rather than protect the most vulnerable.
- Said companies' price-hike expectations and wages for new hires are among the key indicators the ECB will monitor for second-round effects.
- Told the Financial Times on Tuesday that he sees no reason to change rates but promised to closely monitor developments.
Coverage
Europe
ECB signals rate hike readiness even for temporary inflation spike from Iran war
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ECB chief economist declares rate cycle finished as inflation falls below target
Philip Lane says the monetary tightening that brought eurozone inflation from 10% to 1.9% is complete, but warns new shocks require vigilance as growth remains weak.
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