Soaring Oil and Gas Prices Push Europe’s Inflation Fight Into 2027

AI Summary

Rising oil and gas prices in Europe are expected to prolong elevated inflation levels, with eurozone inflation likely to approach the 2% target only by mid-2027. The European Central Bank's chief economist, Philip Lane, warns of a persistent inflation wave driven mainly by energy price increases.

Soaring oil and gas prices will keep most other prices elevated for longer, with eurozone inflation only likely to approach the target rate of 2% towards the middle of next year, the chief economist of the European Central Bank has said. “As ‌a result, we believe this second wave of energy price increases should lead to higher and more persistent inflation, before it recedes towards our target starting in mid-2027,” Philip Lane told a Swiss daily, as quoted by Reuters. Lane added that so far, there has not been a “spill”…