ECB Assesses Iran War Energy Shock for Broader Inflation as Oil and Gas Jump
Updated
Updated · Bloomberg · Jun 8
ECB Assesses Iran War Energy Shock for Broader Inflation as Oil and Gas Jump
1 articles · Updated · Bloomberg · Jun 8
Summary
Olaf Sleijpen said the ECB must determine whether the Iran war’s surge in oil and gas prices is spilling into wider euro-zone inflation.
The Dutch Governing Council member said policymakers can do “little” to offset the direct hit from higher energy costs, making second-round effects the key focus.
He added the ECB will do what is needed to keep prices in check if the energy shock starts feeding through to other parts of the economy.
The remarks underscore how the conflict’s market impact could test the ECB even after energy-driven inflation had eased from earlier peaks.