FRANKFURT, Oct 6 (Reuters) – High euro zone energy costs have yet to generate second-round inflation effects, and the strength of such a pass-through is uncertain, European Central Bank chief economist Philip Lane told Italian news agency ANSA.
“We have not seen so far very strong second-round effects. We continue to look at them,” Lane said in an interview published on Tuesday. “That’s why, even though I am a promoter of the scenarios, it is too simplistic to say we’re in the adverse scenario or the baseline scenario.”
“Energy prices are high but the strength of the pass-through to the rest of the economy remains uncertain,” Lane added.
(Reporting by Balazs Koranyi; Editing by Hugh Lawson)
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