ECB warns of second energy price wave driving persistent inflation

European Central Bank inflation energy prices interest rates Eurozone economy

Philip Lane, Chief Economist of the European Central Bank (ECB), has warned of a ‘second wave’ of energy price increases that could drive inflation higher and make it more persistent. In an interview with Le Temps, Lane noted that this wave involves rising costs for both oil and natural gas, which is expected to impact the prices of food, electricity, and general goods, while pressures on services are likely to remain more contained.

Due to these geopolitical risks and energy shocks, the ECB has already resumed its cycle of interest rate hikes, including a 25 basis point increase on September 10. Officials are considering a further 25 basis point hike as early as October.

Inflation forecasts for the Eurozone have been adjusted, with expectations that inflation will remain above the 2% target for longer than previously anticipated. The ECB projects inflation to average 3% in 2026 and 2.5% in 2027, with a return to the 2% target potentially delayed until mid-2027 or 2028. Eurostat data confirms that energy prices rose 14.3% in August, contributing to a 3.2% year-on-year increase in consumer prices.

Entities

European Central Bank · Eurostat · Le Temps · Philip Lane

Claims

What the coverage asserts, and how many sources carry each claim.

[● 4 SOURCES] A further 25 basis point interest rate hike is considered possible in October. www.energygame.gr · www.insider.gr · www.newmoney.gr · www.tanea.gr
[● 7 SOURCES] A second wave of energy price increases involving both oil and natural gas will lead to higher and more persistent inflation. www.energygame.gr · eurofocus.adnkronos.com · www.insider.gr · www.salkunrakentaja.fi · www.naftemporiki.gr · +2 more
[● 4 SOURCES] Eurozone inflation is projected to average 3% in 2026 and 2.5% in 2027. www.energygame.gr · www.salkunrakentaja.fi · www.newmoney.gr · www.tanea.gr
[● 7 SOURCES] Inflation is expected to return to the 2% target by mid-2027 or later. www.energygame.gr · eurofocus.adnkronos.com · www.insider.gr · www.salkunrakentaja.fi · www.naftemporiki.gr · +2 more
[● 2 SOURCES] The ECB raised interest rates by 25 basis points on September 10. eurofocus.adnkronos.com · www.salkunrakentaja.fi
[● 2 SOURCES] Energy prices increased by 14.3% in August. www.salkunrakentaja.fi · www.naftemporiki.gr
[● 4 SOURCES] Eurozone inflation is expected to approach 4% in the coming months. www.energygame.gr · www.insider.gr · www.newmoney.gr · www.tanea.gr
[○ 1 SOURCE] Eurozone consumer prices rose 3.2% year-on-year in August. www.salkunrakentaja.fi