ECB Chief Economist Says Inflation Pressure Persisting, Oil Unlikely to Fall Below $80-81 Per Barrel

According to Jin10 citing ECB Chief Economist Lane, inflation pressure from Middle East tensions remains accumulating as of June 16, requiring the central bank's preparation. Despite a U.S.-Iran agreement to reopen the Strait of Hormuz, oil prices have not simply returned to pre-crisis levels. Lane stated that four months of elevated energy prices will push inflation above 3% through indirect transmission channels, with energy costs likely feeding into food, commodity, and service prices. Lane indicated oil prices are unlikely to decline significantly from current levels around $80-81 per barrel.
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