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Rising wage-price pressures will eventually reignite inflation in the Eurozone and the European Central Bank is on track toward its goal, the European Central Bank’s chief economist, Philip Lane said in an interview with the Financial Times published Sunday evening.

Key quotes

The fraction of the price level which is most likely to be influenced by wage pressures is moving closer toward the target.

There cannot be a permanent disconnect between labor costs and prices.

Clearly, we are closer to the lower bound than the Federal Reserve is. We are closer to it than we would like to be.

The ECB will consider whether its measures of inflation should take better account of housing costs, which are currently severely under-weighted. 

We at the ECB would agree that there should be more weight on housing – but there is a difficulty and this has been looked at several times before. I do not want to pre-empt the review by saying that that is what we are necessarily going to conclude. It is a real issue and we have to be practical about it.