High energy price across the euro zone is a major concern for the European Central Bank, but it sees supply pressures easing in the oil and gas markets this year, the bank’s chief economist Philip Lane said on Friday.

“The fact that energy prices have risen so much is a major concern. Of course we have to think about in terms of the inflation consequences… The fact that prices have risen so much does mean compared to last year’s rate of increase, there’s probably less upside this year,” Lane told Ireland’s RTE.

“But there are factors we need to look at, geopolitical issues among them for sure. On the other hand what we do think is supply pressures should ease in the aggregate this year… We will keep an eye on this, it’s a very important issue.”