ECB’s Lane: Deceleration in wage growth is necessary to get inflation to target

• Wage pressures are gradually moderating but remain elevated
• While services inflation should decline somewhat in the near term, it is expected to remain relatively elevated for most of the year
• Headline inflation is expected to fluctuate around current levels in the near term
• It should be recognized that the current phase of disinflation is necessarily bumpy

Lane continues to see inflation dropping to target in 2025.

This article was written by Adam Button at www.forexlive.com.