ECB's Escrivá Urges Vigilance on Oil Shock's Wage Impact as Middle East Conflict Lifts Prices
Updated
Updated · Bloomberg · Jun 22
ECB's Escrivá Urges Vigilance on Oil Shock's Wage Impact as Middle East Conflict Lifts Prices
2 articles · Updated · Bloomberg · Jun 22
Summary
Jose Luis Escrivá said the ECB must closely watch whether higher oil and commodity prices feed through into wages, flagging a potential second-round inflation risk.
Higher energy costs tied to the Middle East conflict are already passing into prices in sectors where fuel is a key input, he said, especially transport-related services.
Escrivá said that pass-through was the most relevant takeaway from the ECB's monetary policy meeting earlier this month, underscoring concern that an energy shock could broaden beyond headline inflation.