ECB chief economist Lane said in London on Thursday the energy-price shock from the Middle East conflict has not materially transmitted to other parts of the economy, so the ECB can respond 'prudently'. He said underlying inflation is expected to pick up next year but there is no sign of any nonlinear acceleration in inflation pressures. Wage rises embodied in current pay deals remain 'quite modest', suggesting no clear wage–price spiral. He described the episode as a medium-sized shock requirin

ECB chief economist Lane said in London on Thursday the energy-price shock from the Middle East conflict has not materially transmitted to other parts of the economy, so the ECB can respond 'prudently'. He said underlying inflation is expected to pick up next year but there is no sign of any nonlinear acceleration in inflation pressures. Wage rises embodied in current pay deals remain 'quite modest', suggesting no clear wage–price spiral. He described the episode as a medium-sized shock requiring a cautious, measured policy response.