Eurozone Inflation to Reach 2% by Mid-2027 as Energy Prices Keep Pressure Elevated
Updated
Updated · OilPrice.com · Sep 22
Eurozone Inflation to Reach 2% by Mid-2027 as Energy Prices Keep Pressure Elevated
3 articles · Updated · OilPrice.com · Sep 22
Summary
Philip Lane said eurozone inflation will recede toward the ECB’s 2% target only from mid-2027, as a second wave of oil and gas price increases makes inflation more persistent.
Lane said the pass-through from energy into broader prices has been limited since February, but he expects later spillovers into food, electricity and goods, while services inflation should stay relatively contained.
EU retail fuel prices are already at record highs, with gasoline up 29% and diesel up 40% on a weighted-average basis since February, intensifying concern across eurozone economies.
August energy inflation in the eurozone hit 14.3%, and ECB expectations for diesel prices to peak by October could prove too optimistic if supply tightens further or the U.S. restricts fuel exports.