Speech by Philip R. Lane, Member of the Executive Board of the ECB, at the Institute of International and European Affairs, Dublin

Dublin, 27 May 2024

Introduction

The aim of this speech is to examine inflation in the euro area. In the next section, I review the various inflation indicators tracked by the ECB.^[1] Subsequently, I discuss the implications for monetary policy.

Overview of Inflation Indicators

Chart 1 shows the evolution of headline and core inflation since 2019. Let me focus on the disinflation patterns since August 2023 (the month immediately prior to our last rate hike at our September monetary policy meeting). Inflation declined from 5.2 per cent last August to 2.4 percent in April, while core inflation decreased from 5.3 per cent in August to 2.7 per cent in April.