ECB's Lane says underlying inflation indicators indicate that an upward shift in medium-term inflation has not taken hold

We will base our future interest rate decisions on a meeting-by-meeting, data-dependent basis. In closing, I have highlighted in this speech that the recent surge in energy prices can be interpreted as a second wave of the energy supply shock, following the initial jump at the start of the Middle East conflict and the temporary fall-back during the summer. This second wave of the energy supply shock poses direct upside risks to the inflation outlook but also downside risks to the growth outlook. It follows that the impact of the second wave on inflation and activity will require close monitoring. In any event, the overall size and duration of the energy supply shock remain highly dependent on geopolitical developments, such that the overall energy outlook may be subject to further revisions.