ECB chief economist expecting 'rapid decline' in inflation

The European Central Bank (ECB) expects the high inflation in the eurozone to decline rapidly, according to its chief economist, reported dpa.

The central bank expects to see a "rapid decline in inflation," said ECB chief economist Philip Lane in an interview with the newspaper Die Zeit published on Wednesday.

Inflation has already fallen in recent months. But at 8.5%, it is still well above the ECB's medium-term inflation target of 2%.

Currently, we are probably "in the most intense phase of inflation," Lane said.

"Food prices are still very high, and that's what people see when they go to the supermarket."

But if you look at previous prices for food ingredients, for example, he said, you find that "there's been a turnaround."

Energy prices have already gone down, he said, and there are fewer of the supply chain bottlenecks that have dogged production in the last couple of years. There is an improvement that will be gradual in the spring and summer, "but quite strong in the autumn."

To ensure that inflation falls to 2%, further rate hikes are needed, he said.