MNI BRIEF: EZ Inflation 'Likely Close To Peak' : ECB's Lane

Headline inflation in the eurozone is likely close to a peak, although the high point may have been in November or come in early 2023, European Central Bank chief economist Philip Lane said in an interview published Tuesday.

"The main uncertainty is that we’ve seen so much volatility in gas prices," Lane told Milano Finanza, add that "given the significant increase in prices, I don’t rule out some extra inflation early next year." Lane said once past summer 2023, "we should see a sizeable drop in the inflation rate. That said, the journey of inflation from the current very high levels back to 2% will take time."

However, Lane warned that core inflation could continue to edge higher, as energy and wages costs get passed through to consumer prices. He did though say price issues tied to pandemic-related problems should start to fade.