ECB's Escrivá Warns EU Inflation Outlook Is Uncertain as Energy Costs Spread to 2 Sectors
Updated
Updated · tmgm.com · Jun 18
ECB's Escrivá Warns EU Inflation Outlook Is Uncertain as Energy Costs Spread to 2 Sectors
2 articles · Updated · tmgm.com · Jun 18
Summary
Barcelona-based ECB policymaker José Luis Escrivá said higher energy costs are now feeding into services and transport, leaving the EU inflation outlook highly uncertain.
Oil is the main source of that uncertainty, he said, because it remains unclear how quickly production will recover and where prices will settle.
Escrivá added that the key risk is whether energy-driven price pressures trigger second-round effects in wages, though he said those wage effects have not yet materialized.
The warning suggests the ECB still faces an uneven inflation path even without clear evidence yet of a broader wage-price spiral.