Interview with Philip R. Lane, Member of the Executive Board of the ECB, conducted by Christian Siedenbiedel on 20 May 2025

27 May 2025

Mr Lane, inflation rates in the euro area have fallen sharply since autumn 2022. Has inflation been beaten?

As you say, inflation rates were temporarily above 10 per cent in 2022. Over the past two years, we have focused on bringing inflation back down to 2 per cent. This task has now mostly been completed. I am saying “mostly” because some final steps still need to be taken. For example, services inflation is still too high. But we expect it to decline in the coming months, as we think wage inflation is coming down. So the disinflation from the high inflation of 2022 is on track – but unfortunately new challenges are emerging.

Over what time frame are you expecting the inflation rate to sustainably meet the ECB’s 2 per cent target?

Recently, the inflation rate in the euro area stood at 2.2 per cent, which isn’t so far from our 2 per cent…