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In-depth analysis of the inflation outlook by Philip Lane. Three main takeaways, all dovish looking beyond the pandemic.
First, ignore the noise in inflation this year due to a combination of factors (new HICP weights; imputed prices; taxes; seasonal sales). The ECB will look through this unusually high volatility, focusing on the 2022-23 outlook. 
Second, the inflation outlook remains subdued due to weak demand and high uncertainty. The ECB's approach isn't *that* different from the Fed's: "the generation of sustained wage pressures requires a labour market that is sufficiently hot". #HighPressureEconomy
