Lane emphasizes: “To get back to lower inflation requires recognizing that corporate profitability will fall for a while.” It also means that wages will not be able to keep pace with inflation for a while, according to the ECB’s chief economist. Above all, exploding energy prices and delivery bottlenecks have been fueling inflation for months. The European Central Bank (ECB) is trying to counteract this with higher interest rates – the key interest rate is currently 1.25 percent. In the medium term, the ECB is aiming for stable prices with an inflation rate of two percent for the euro area. In August, consumer prices in the currency area were 9.1 percent above the level of the same month last year. In September they will probably climb to a record 9.6 percent. For years to come, however, Lane gave the all-clear. Inflation will fall significantly as early as 2023 thanks to a foreseeable stabilization in energy prices.