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ECB’s Lane Toughens Euro Message With Warning on Inflation

  • Upward pressure on prices from rebound has been muted
  • Lane’s remarks are stronger than those from President Lagarde
Philip Lane
Philip LanePhotographer: Jason Alden/Bloomberg
Updated on

European Central Bank chief economist Philip Lane warned that the euro’s appreciation this year has dampened the inflation outlook, using tougher language than President Christine Lagarde and signaling that more monetary stimulus might be needed.

Inflation will remain negative for the rest of the year and upward revisions in core price growth because of the economic rebound have been “significantly muted” by the stronger exchange rate, he wrote in a blog post on Friday.