Consumers across the eurozone may need to get used to current higher prices even as the current inflation is likely to 'fade away' in the year ahead, European Central Bank (ECB) Chief Economist Philip Lane said in an interview with Politico published Tuesday.

Key quotes (via MNI)

"Europe may have to get used to higher prices.”

"Most of this inflation will fade away the momentum where every month you wake up and you read that inflation is higher than the previous month – that element, the momentum element - we do think will decline.”

“We do think that inflation will decline later this year and will be a lot lower next year and the year after compared to this year."

Market reaction

The shared currency shrugs off these above comments, as EUR/USD keeps its range just below 1.1000 amid firmer Treasury yields and an upbeat mood.