ECB's Lane: Food inflation will reverse later this year

European Central Bank (ECB) Chief Economist, Philip Lane, said on Friday, “food inflation will reverse later this year.”

Additional quotes

“Energy price fall will feed into core prices but timeframe is uncertain.”

“There are some upside risks to wage growth.”

“Real wage growth correction has to be a gradual process.”

Market reaction

At the time of writing, EUR/USD is trading modestly flat at 1.0730, awaiting the US PCE inflation data for fresh trading impetus.