ECB's Lane: Supply bottlenecks and rising energy prices main risks to inflation outlook

European Central Bank (ECB) chief economist Philip Lane said on Monday that supply bottlenecks and rising energy prices are the main risks to the pace of economic recovery and the inflation outlook, as reported by Reuters.

Additional takeaways

"Our analysis is indicating that the euro area is still confronted with weak medium-term inflation dynamics remains compelling."

"If supply shortages and higher energy prices last longer, these could slow down the recovery."

"If persistent bottlenecks feed through into higher than anticipated wage rises or the economy returns more quickly to full capacity, price pressures could become stronger."

"Economic activity could outperform our expectations if consumers become more confident and save less than currently expected."

Market reaction

These comments don't seem to be having a significant impact on the common currency's performance against its rivals. As of writing, the EUR/USD pair was up 0.12% on a daily basis at 1.1578.