FRANKFURT – Much of the underlying inflation in the euro zone is a factor of high energy prices and will likely fade over time as fuel costs off, European Central Bank chief economist Philip Lane said on Thursday.
“One percentage point of goods inflation might be attributable to factors we think are temporary,” Lane said. “Core inflation is above 2% now but there are reasons to expect it would fade because of those level effects.”
He added that abound 80 basis points of core or underlying inflation was purely down to the energy price shock.
(Reporting by Balazs Koranyi; Editing by Francesco Canepa)