What happened
European Central Bank chief economist Philip Lane said that second-round energy price increases will push inflation higher.
According to Lane, inflation will only begin to move back toward the target level from mid-2027.
Why it matters
The remarks suggest the ECB expects energy-driven price pressures to persist rather than fade quickly, which could shape how long restrictive policy stays in place.
By pointing to mid-2027 for a return toward target, Lane signals that the final stretch of disinflation may be slower than a simple drop in energy prices would imply.
Key facts
Lane is the ECB's chief economist.
Lane said second-round energy price increases will push inflation higher.
Lane said inflation will only fall back toward target from mid-2027.
What to watch next
Whether subsequent ECB commentary repeats the mid-2027 timeline or shifts it as energy price dynamics evolve.
How the ECB frames the distinction between direct energy price moves and second-round effects in future communications.
