FRANKFURT (Reuters) -The European Central Bank is confident that stubbornly high services inflation will moderate this year, helping it get overall price growth back to the 2% target, ECB chief economist Philip Lane said on Friday.

“We’re seeing wage contracts having actually quite low settlements for this year, even lower for next year,” Lane told a lecture. “So we are confident that service inflation will come back.”

Still, he warned that shocks have become the norm in recent years, and already this year, there have been large movements in exchange rates and energy prices, partly because of major changes in the global trading system.