"There has been much less progress in relation to domestic inflation compared to broader inflation measures," European Central Bank (ECB) chief economist Philip Lane said, per Reuters.
Key takeaways
"Even if the near-term inflation outlook is somewhat bumpy, the projected convergence of inflation to the target in 2025 will be underpinned."
"Deceleration in wage growth is necessary in order for services inflation to converge to a rate that is consistent with meeting the 2% target."
"While services inflation should decline somewhat in the near term, it is expected to remain relatively elevated for most of this year."
"Wage pressures are gradually moderating but remain elevated."
"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."
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