ECB’s Best Way to Read Inflation Is Forecasting, Lane Says 

The European Central Bank’s best option to assess inflation trends is still comprehensive forecasting -- despite recent failures to capture the grueling cost-of-living crisis, according to Chief Economist Philip Lane.

In a blog post on Friday, Lane outlined various price gauges and developments the ECB considers to set monetary policy. He dismissed an over-reliance on monthly data that some officials argue is a better signal for where interest rates should go in the short term, and said wage growth will drive inflation for years to come.