The hike in energy prices currently plaguing Europe is not a long-term concern, according to the European Central Bank’s chief economist.

A 23.5 per cent jump in energy prices has in turn led to increasing costs, with the Eurozone’s inflation rate standing at 4.1 per cent as of October, up by 0.7 per cent from the previous month, and the highest in over a decade.

Echoing the ECB’s long-standing position, economist Philip Lane insisted prices will stabilise in the coming months.

“This period of inflation is very unusual and temporary, and not a sign of a chronic situation,” he said in an interview with Spanish newspaper El País, hours before finance ministers from across the EU met in Brussels to discuss the rising cost of living.

“Next year the bottlenecks will ease and energy prices will drop or stabilize,” he added.

A study by the Central Bank of Malta published in October found that two-thirds of local businesses were facing higher costs, although less than 40 per cent had passed those costs onto consumers.

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