ECB Chief Economist: Inflation momentum remains high

European Central Bank (ECB) Chief Economist Philip Lane said that inflation momentum in the Eurozone is still high but will slow down by the end of the year. ECB official Lane shared his views on inflation in a speech he gave at a panel in Berlin. Lane said, “Inflation momentum is still high but inflation will slow down by the end of this year as the shocks are eliminated.” Lane stated that food and core inflation are still high. Inflation in the Eurozone has fallen from double digits, the ECB increased interest rates by 25 basis points at its last meeting, and officials stated that upward risks continue. Many economists expect banks to increase interest rates by 25 basis points in June and July. Dutch Central Bank Governor Klaas Knot recently said that borrowing costs should continue to rise until a meaningful slowdown in inflation is seen, while French Central Bank Governor Villeroy de Galhau shared a similar view.