ECB chief economist Lane said on Thursday that despite recent energy-price declines, euro-area inf will remain elevated for an extended period. He noted the ECB raised rates last week — its first hike in nearly three years — to counter energy-price jumps after the late-February Middle East shock. An Iran–US peace agreement has since pushed oil and gas prices sharply lower. Lane said the ECB has no doubt the rate decision was correct and still expects inf to stay above the 2% target for a prolong

ECB chief economist Lane said on Thursday that despite recent energy-price declines, euro-area inf will remain elevated for an extended period. He noted the ECB raised rates last week — its first hike in nearly three years — to counter energy-price jumps after the late-February Middle East shock. An Iran–US peace agreement has since pushed oil and gas prices sharply lower. Lane said the ECB has no doubt the rate decision was correct and still expects inf to stay above the 2% target for a prolonged period, citing upward pressure on food, goods and services prices; even under a milder oil-price scenario, tightening was appropriate.